Packaging industry overview

An overview of the packaging industry in 2004 and an outlook for 2005 as per the research report from Merrill Lynch, is presented. Merrill Lynch believes that the earnings growth will improve for the group in 2005 compared to the relatively weak performance posted in 2004. However, packaging companies must continue to face elevated raw material costs at least during the first half of the year, which will likely limit earnings growth and stock performance of the group. According to an in-depth report from The Freedonia Group, Inc., an industrial market research firm, demand for paper packaging (excluding corrugated and folding boxes) is expected to rise 2.3 per cent to reach $8.4 billion in 2008.