Reynolds Group improves revenues, EBITDA in 2010

By Jennifer Lanning Drey

Savannah, Ga., March 29 - Reynolds Group Holdings Ltd. posted revenue and EBITDA improvement in 2010, helped in part by the company's acquisition of Pactiv Corp. in November, Tom Degnan, Reynolds' chief executive officer, said Tuesday during a conference call held to discuss year-end results.

"For the full year, we saw ongoing, continuous strong performance across all of our segments," Degnan said.

Reynolds Group reported $6.8 billion of revenues for 2010, which was $860 million higher than revenues in the prior year. Of the revenue increase, $480 million was due to the Pactiv acquisition. Growth in Reynolds' legacy businesses accounted for the other $380 million, Allen Hugli, Reynolds' chief financial officer, said during the call.

EBITDA was $1.25 billion for the year, up from EBITDA of $1.13 billion in 2009. Hugli said $87 million of the increase was due to Pactiv.

Pro forma adjusted EBITDA to reflect a full year of Pactiv was $2.1 billion, which the CFO said is in line with the company's expectations.

Synergy realization from Pactiv is on track and expected to happen as planned, Degnan said.

The CEO also noted that following the close of 2010, Reynolds completed a successful refinancing in February that reduced its interest costs and provided a longer-term debt structure and smoother maturity profile.

"We believe Reynolds is well positioned to capitalize on the improving markets," he said.

Reynolds Group is an Auckland, New Zealand-based manufacturer and supplier of consumer food and beverage packaging and storage products.

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