Evansville-based Berry Global Group Inc. (NYSE: BERY) is reporting fiscal second quarter net income of $72 million, up from $59 million during the same period the previous year. The company also says it set a quarterly record in net sales with $1.8 billion.
Berry says the record net sales are related to the acquisition of AEP Industries Inc., which closed in January, as well as selling price increases. The company saw an increase in net sales for its engineered materials division, but saw decreases in net sales for its consumer packaging and health, hygiene, and specialties divisions.
"We remain excited about our recent acquisition of AEP, and the results to date have validated our expectations of the synergy potential and scale advantages through the combined businesses," said Tom Salmon, chief executive officer of Berry. "Based on our progress to date, we are increasing our annual cost synergy target for the AEP acquisition from our initial $50 million to $70 million. Throughout the remainder of the year we will continue to work on further cost reduction opportunities."
Salmon was promoted to CEO in February, succeeding the retiring Jon Rich. One day after the fiscal second quarter ended, Berry announced it was changing its name from Berry Plastics Group to Berry Global Group, a move Berry said reflected a more balanced view of the company.