The Canadian Press
TORONTO - Stock in Intertape Polymer Group Inc. (TSX:ITP) is soaring in the wake of a strong earnings report and a big increase in the company's dividend.
On the Toronto Stock Exchange, shares in the Montreal-based maker of paper and polyolefin packaging products are up $1.70, or more than 14 per cent, at $13.50 on heavy volume of more than 3.2 million shares.
Late Wednesday, the company, which keeps its books in U.S. dollars, announced it was switching from a semi-annual to a quarterly dividend, with the three-month payout rising to eight cents US, double the previous annualized amount.
For the three months ended June 30, Intertape reported net earnings of US$15.1 million or 25 cents per share, reversing a loss of US$3.9 million or seven cents per share, in the same year-earlier period. Adjusted fully diluted EPS was 30 cents US per share, up from 15 cents in the second quarter of 2012.
Second-quarter revenue was US$193.5 million, down 2.2 per cent from US$197.8 million from the second quarter of 2012 and a 1.6 per cent sequential decrease from US$196.7 million in the first quarter of 2013.
Revenue was lower in both periods due to a decrease in sales volume partially offset by an increase in selling prices, including the impact of product mix, the company said.