WASHINGTON - Film converters led the flexible packaging industry in pretax profit for 1994, but profit for packaging converters dipped slightly, according to a report by the Flexible Packaging Association. The Washington-based industry group published its ``1994 Operating Ratio Report,'' showing profit as a percentage of net sales down just 0.3 percent to 5 percent during the year. Profit for 1992 was 5.1 percent, and for 1993 was 5.3 percent.
The report showed that converters who extrude film as their primary manufacturing operation earned the highest profit with about 5.7 percent, while multiweb converters showed a profit margin of 5.6 per-cent.
Bag converters earned the lowest profit, just 0.1 percent.
Those converters with sales between $15 million and $50 million annually enjoyed the highest profit, averaging 5.5 percent before taxes, and converters with sales less than $15 million suffered losses averaging 3.5 percent.
The association said the sharp rise in materials and manufacturing costs affected the industry.
FPA compiled the report from responses of 48 percent of its converter members.
Association members produce about 85 percent of the flexible packaging made in the United States.