Cereplast Sees Growth Back in Market for Plastics Giants
EL SEGUNDO, Calif., Jul 28, 2010 (BUSINESS WIRE) --
Copyright Business Wire 2010
Cereplast,
Inc. (NASDAQ: CERP), a leading manufacturer of proprietary
bio-based, sustainable plastics, commented today that increased growth
rates for plastic giants such as DuPont and Alcoa combined with higher
costs for crude oil bode well for the bioplastics industry as
science-based initiatives and green technologies begin to lead the way
and the economic recovery takes hold.
On July 27, DuPont reported better-than-expected EPS for the second
quarter of 2010 as profits nearly tripled, driven by strong emerging
market demand and sales of specialty chemicals. The recovery in demand
and cost reduction helped the company beat Wall Street estimates of
$0.94 per share for the second quarter as the company reported profit of
$1.2 billion, or $1.26 per share, versus $0.41 for the same period a
year ago, and raised estimates for 2010. Sales to the automotive and
industrial markets, which consume such materials as plastic components,
rubber tires and hoses, increased during the quarter. Earlier this month
on July 12, aluminum maker Alcoa, which also manufactures a wide
selection of extruded plastics, reported better-than-expected earnings
that topped analysts' estimates. Second quarter earnings came in at $136
million, or $0.13 per share compared to loss of $454 million, $0.47 per
share, for the same period last year. Analysts had expected $0.12 a
share for the quarter. Both DuPont and Alcoa are Dow components whose
earnings are closely watched.
"The traditional plastics industry is very large and rebounding from a
slump in global demand as reflected by better-than-expected earnings
from DuPont and Alcoa, and this bodes well for our industry," said
Frederic Scheer, Founder, Chairman and CEO of Cereplast, Inc. "Plastics
are everywhere, on the clothes we wear, in the cars we drive as well as
in countless industrial applications, consumer goods and electronics.
The necessity of having alternatives, such as our bio-resins, is making
sense to a lot of plastics manufacturers, driven both by consumer demand
and awareness of sustainable alternatives and cleaner,
environmentally-friendly solutions to petroleum-based plastics."
Industry production and sales for plastics in 2009 rose less than 1% for
all major resins types, following a 12% decline in 2008, which was the
lowest annual amount since 2001, according to data from Standard &
Poor's. Monthly production and sales comparisons for the last four
months of 2009 were positive against the same period in 2008, which
experienced the downturn in consumer demand during late 2008.
Year-over-year production and sales trends for the major resins in the
first four months of 2010 have continued to recover, the data provider
said, with total production up 7.4% and sales growing 5.8% from their
reduced levels in the 2009 quarter.
"We have a solid outlook for 2010 and expect to ship approximately 16
million pounds of bio-resins to our customers this year, representing a
400% increased compared to 2009," added Mr. Scheer. "Bioplastics have
the benefit of being fully compostable and are a compelling choice as
the cost structure quickly becomes competitive with petrochemical
plastics and consumers demand sustainable solutions that protect the
environment. We believe the rebound in growth of the plastics industry
at large will be a tremendous benefit to our bio-based resins as demand
for our products grows."
About Cereplast, Inc.
Cereplast, Inc. (NASDAQ: CERP) designs and manufactures proprietary
bio-based, sustainable plastics which are used as substitutes for
petroleum-based plastics in all major converting processes - such as
injection molding, thermoforming, blow molding and extrusions - at a
pricing structure that is competitive with petroleum-based plastics. On
the cutting-edge of bio-based plastic material development, Cereplast
now offers resins to meet a variety of customer demands. Cereplast
Compostables(R) Resins are ideally suited for single use applications
where high bio-based content and compostability are advantageous,
especially in the food service industry. Cereplast Hybrid Resins(R)
combine high bio-based content with the durability and endurance of
traditional plastic, making them ideal for applications in industries
such as automotive, consumer electronics and packaging. Learn more at www.cereplast.com.
Safe Harbor Statement
Matters discussed in this press release contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. When used in this press release, the words
"anticipate," "believe," "estimate," "may," "intend," "expect" and
similar expressions identify such forward-looking statements. Actual
results, performance or achievements could differ materially from those
contemplated, expressed or implied by the forward-looking statements
contained herein. These forward-looking statements are based largely on
the expectations of the Company and are subject to a number of risks and
uncertainties. These include, but are not limited to, risks and
uncertainties associated with: the impact of economic, competitive and
other factors affecting the Company and its operations, markets,
product, and distributor performance, the impact on the national and
local economies resulting from terrorist actions, and U.S. actions
subsequently; and other factors detailed in reports filed by the Company.
SOURCE: Cereplast, Inc.
|
|