Company to Reset Freight Allowances to Offset Transportation Surcharges MARIETTA, Ga., June 24
MARIETTA, Ga., June 24 /PRNewswire/ -- Graphic Packaging International,
Inc., a subsidiary of Graphic Packaging Holding Company (NYSE: GPK), today
announced price increases for its coated unbleached kraft (CUK) grades to
cover higher costs for mill inputs, including fiber, energy and chemicals. The
Company also announced that it would set new freight allowances.
Graphic Packaging will increase the price of its Pearl-Kote(R) and
Omni-Kote(R) coated unbleached kraft paperboard used for food packaging, and
Aqua-Kote(R) paperboard used for beverage carriers, by $40 per ton, effective
with shipments on or after August 1, 2008.
"Given the rapidly rising price of crude oil and resulting higher costs
for key manufacturing inputs like fiber, energy and chemicals, we are
responding quickly to offset the imbalance with various actions, including
price increases for paperboard," said David W. Scheible, President and Chief
Executive Officer.
"Additionally, the rapid escalation of transportation lane and fuel
surcharge rates makes it necessary for the Company to implement new freight
allowances. Historically, paper manufacturers have borne the full amount of
freight to their customers. Today's market dynamics require us to change this
approach to remain competitive and to continue to deliver high-quality,
innovative packaging to our customers, while also providing positive returns
for our shareholders," Scheible said.
Forward Looking Statements
Statements of the Company's plans regarding price increases and freight
allowances in this release constitute "forward-looking statements" as defined
in the Private Securities Litigation Reform Act of 1995. Such statements are
based on currently available information and are subject to various risks and
uncertainties that could cause actual results to differ materially from the
Company's present expectations. Undue reliance should not be placed on such
forward-looking statements, as such statements speak only as of the date on
which they are made and the Company undertakes no obligation to update such
statements. Additional information regarding these and other risks is
contained in the Company's periodic filings with the SEC.
About Graphic Packaging Holding Company
Graphic Packaging International, Inc., a subsidiary of Graphic Packaging
Holding Company (NYSE: GPK), headquartered in Marietta, Georgia, is a leading
provider of packaging solutions for a wide variety of products to food,
beverage and other consumer products companies. The Company is one of the
largest producers of folding cartons and holds a leading market position in
coated-recycled boxboard and specialty bag packaging. The Company's customers
include some of the most widely recognized companies in the world. Additional
information about Graphic Packaging, its business and its products is
available on the Company's web site at http://www.graphicpkg.com .
SOURCE Graphic Packaging International, Inc.
