AMG quarterly earnings tumble as corrugator outages curb output

AMG Packaging and Paper Company Limited saw its earnings more than halve in the most recent quarter after output weakened. Company leaders nonetheless expressed confidence and said expansion work is continuing.

For the third quarter ending May 2026, net income before tax stood at $21.2 million, compared with $49.8 million in the same period a year earlier — a 57 per cent fall. Over the nine months to May, that figure slipped 67 per cent, from $111.7 million to $36.2 million.

“We are very mindful of the fact that the profits are down, but we are holding our own and we’re still profitable, which is good,” Chairman Metry Seaga told the Financial Gleaner on Monday. “I wouldn’t say that we are worried or concerned.”

Managing Director George Hugh, writing in the firm’s management discussion and analysis (MDA), traced the weaker net income mainly to a 15 per cent drop in sales revenue, linked in part to a 42 per cent fall in units produced after corrugator downtime. AMG manufactures assorted carton boxes for manufacturers.

Hugh also said the expansion and relocation drive remains on track. “As we move closer towards the expansion and relocation of our factory, we have made some strategic decisions which will allow us to alleviate some of the issues associated with our current production levels,” he stated in the MDA.

According to the MDA, fitting and commissioning extra corrugator parts during the second quarter brought unforeseen difficulties that weighed on third-quarter operations. “We projected to complete the unfulfilled orders which were impacted by the aftermath of Hurricane Melissa, but the challenges we encountered prevailed…Despite the issues we faced, we managed to fulfil more than 70 per cent of the orders we received within the quarter, which still resulted in a profitable position,” the MDA said.

Seaga confirmed AMG plans to leave its present site at Retirement Crescent in Kingston, which the company has outgrown, but would not set a date. “I don’t want to go into too much detail now…but we are looking at completely new equipment right throughout the plant, and then possibly moving into a bigger facility,” he said.