Ropak Expects Earnings to Fall

Ropak Corp.’s net earnings may be down in 1989, officials of the Anaheim packaging maker said at the company’s annual shareholder meeting last week.

The company said costs from plant and product expansions and lower plant utilization could lead to a downturn. Earnings of $231,000 in this year’s first quarter were down nearly 50% from the same period a year ago.

However, revenue is expected to grow to more than $100 million this year from last year’s $88.8 million, the company said.

Also last week, Ropak declared a 10% stock dividend, which will give shareholders a new share of stock for every 10 shares they now own. The dividend, which will be distributed on June 30 to shareholders as of June 15, will increase shares outstanding from 2.8 million to about 3.1 million. The company made its first stock dividend, also a 10% payout, a year ago.