FORM 8-K. - CURRENT REPORT
(As last amended in Rel. No. 34-36968, eff. 08/13/92.)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (D) of the Securities Exchange Act of 1934.
Date of Report (Date of earliest event reported) October 3, 1995
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Blessings Corporation
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(Exact name of registrant as specified in its charter)
Delaware 1-4684 13-5566477
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(name or other jurisdiction (commission (IRS employer
of incorporation) file number) identification no.)
200 Enterprise Drive, Newport News, VA 23603
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(address of principal executive offices) (zip code)
Registrant's telephone number, including area code (804) 887-2100
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(former name or former address, if changed since last report.)
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Item 5. Other Events.
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See the press release dated October 3, 1995, disclosing third
quarter 1995 earnings projection which is incorporated herein by reference.
<PAGE>
CONTACT: James P. Luke
Executive Vice President
Secretary/Treasurer
FOR IMMEDIATE RELEASE
NEWPORT NEWS, VA., October 3, 1995. Blessings Corporation (AMEX symbol
BCO) announced today that it expects to report lower operating results for the
company's third quarter ending on October 7, 1995. The Company stated that third
quarter earnings are anticipated to be in a range of $.04 to $.08 per share
compared to record earnings for the third quarter of 1994 of $.28 per share on
10,169,806 average common shares outstanding, restated to reflect the 2 for 1
stock split announced December 15, 1994.
Dr. Elwood M. Miller, President and CEO of Blessings Corporation re-
ported that there were several significant factors contributing to the weaker
third quarter results:
"First, profit margins continue to be depressed by the steep rise in
raw material costs which occurred during the fourth quarter of 1994 and which
remained at record levels through the first quarter of 1995. While these costs
have begun to decline, and are now about 15% below their highs of earlier in the
year, they remain approximately 30% above the average price of the prior five
years. We expect this decline to continue through the remainder of the year and
to stabilize during 1996 which should have a positive impact on margins."
"Second, in addition to extreme market disruptions imposed by the
cyclical and highly volatile raw material environment, the plastic film industry
serving the healthcare market is broadly experiencing the effects of excess
capacity resulting from downgauging in direct response to the higher raw
material costs as well as from product redesign by healthcare disposable
manufacturers." Dr. Miller noted that, "As a leader in thin gauge technology,
Blessings is well positioned to benefit over the longer term from these trends.
Unfortunately, the industry-wide excess capacity and the accelerated pace at
which these changes have occurred have effected pricing and profitability
further into the third quarter than originally anticipated."
With regard to the Company's 60% owned Mexican subsidiary, NEPSA, Dr.
Miller stated that: "Although relative financial stability has returned to
Mexico, the consumer sector of the Mexican economy remains weak and NEPSA
revenues will be less than previously forecast. We continue, however, to be
optimistic about our future in Mexico and the export opportunity for the
world-class printed and converted products which NEPSA produces. Despite the
economic difficulties which Mexico has encountered, NEPSA's contribution to
Blessings in 1995 has been a positive earnings per share benefit to
shareholders."
SIGNATURE
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Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Registrant:
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BLESSINGS CORPORATION
By: /s/ James P. Luke
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James P. Luke, Executive Vice President
Secretary/Treasurer
Date: October 10, 1995
