Reynolds Consumer Products, a leading producer of cooking, waste, storage, and tableware products based in Lake Forest, Illinois, has announced higher earnings for the third quarter. Despite a decline in revenue, the company managed to decrease operational costs, contributing to the positive financial results.
Strong Profit Numbers
Reynolds reported a profit of $78 million, equivalent to 37 cents per share, during the third quarter. This marks a significant increase compared to the profit of $48 million, or 23 cents per share, achieved during the same period last year.
Adjusted Earnings in Line with Estimates
After excluding one-time items, the company’s adjusted earnings also stood at 37 cents per share. This figure is consistent with the consensus estimate provided by analysts surveyed by FactSet.
Although revenue dropped from $967 million to $935 million compared to the year-ago quarter, it still exceeded analyst projections. FactSet reported analyst estimates for revenue at $932.4 million.
Factors Driving Higher Profit
Reynolds attributes its higher bottom line to a combination of price increases and reduced operational costs. These positives offset increased overhead costs, interest expenses, and income taxes. It should be noted that volumes were lower in the cooking and baking segment, hefty tableware unit, and Presto Products business.