But the company said it expected a sales jump in 2010 as the recovery took hold and declared it was on the look out for further acquisitions – following its take over of APET outfit PWP.

Pactiv, which has a large food packaging division – including a European egg box operation - said rising polyethylene and polystyrene costs, plus the continued effects of the recession, had all contributed to its first-quarter profits falling to $48m – compared to $77m in the same period in 2009.

"Compared with last year’s first quarter, polyethylene costs rose 34 per cent, and polystyrene costs were up 55 per cent,” said Richard L. Wambold, Pactiv’s chairman and chief executive officer. “As a result, we are still in the process of catching up with price increases to offset the higher costs. Overall, our focus is on recovering these cost increases in a competitive environment."

Food packaging

In its food packaging segment, Q1 sales rose one percent to $486 million from $483 million in 2009. The volume increase was driven by polypropylene containers, processor trays, and paper-based items as well as continued growth in cups and cutlery

Pactiv, which acquired APET business PWP at the start of April, said it expected its full year sales to jump by 10-12 per cent.

“We are now in the process of integrating PWP and will be well positioned to grow our APET business as foodservice and processor markets recover,” said Wambold. “We also continue to look at other acquisition opportunities.”