UPDATE 1-Pactiv Q3 drops on raw materials, sale expense

* Q3 net profit 60 cents/shr vs 70 cents/shr last year

* Revenue up 12 percent to $944 million

* Stock drops slightly

NEW YORK, Nov 1 (BestGrowthStock) – Pactiv Corp (PTV.N: ), the maker
of Hefty food storage and garbage bags, said on Monday its
quarterly profit dropped because of higher raw material costs
and expense related to the company’s proposed sale.

Pactiv has agreed to be acquired by New Zealand billionaire
Graeme Hart’s Reynolds Group Holdings Ltd. The deal is expected
to close by the end of 2010. [ID:nN17125243]

Third-quarter net income was $81 million, or 60 cents per
share, compared with earnings of $94 million, or 70 cents per
share in the same quarter of 2009. Income from continuing
operations was $79 million, or 59 cents per share, the Lake
Forest, Illinois-based company said.

Although sales rose 12 percent to $944 million, Chairman
and Chief Executive Officer Richard Wambold said margins were
compressed as raw material costs increased in the quarter.

Also, Pactiv incurred $11 million of higher operating costs
for startup of new production processes and equipment, and
about $9 million in expense related to the proposed sale of the
company, he said.

Pactiv stock was down 2 cents at $33.16 in early trading on
the New York Stock Exchange.
(Reporting by Ernest Scheyder; Editing by Derek Caney)

UPDATE 1-Pactiv Q3 drops on raw materials, sale expense