NYSE warns Marietta’s Graphic Packaging about stock price

The New York Stock Exchange has told Marietta-based Graphic Packaging its stock is in “below criteria” status for continued listing.

The packaging company, whose shares have plunged 70 percent in the last year, has not met the $1-per-share-minimum average 30 trading-day closing price to remain on the NYSE.

Graphic Packaging’s average 30-day closing price was 98 cents per share on Wednesday. Shares closed at 77 cents, up 4 cents.

NYSE officials sent the notice Feb. 6. Graphic Packaging made it public Wednesday after the close of markets.

Under NYSE rules, the company has six months to bring the average common share price back above $1. For now, Graphic Packaging’s shares will remain listed on the NYSE, so long as it meets other requirements such as maintaining a 30-day average minimum global market capitalization of $25 million.

The company said it will respond within 10 days with plans to fix the problem.

“We do not believe the current stock price is a reliable indicator of the company’s strong financial and operating position. Graphic Packaging is focused on stable food and beverage end use markets which tend to be recession resistant and has major positions with all the large consumer based companies that serve those markets,” David Scheible, Graphic Packaging’s president and chief executive said in a statement. “Graphic is executing well on the $90 million synergy plan related to our combination with Altivity Packaging, has ample liquidity and no debt maturities before August 2011.

“The company is comfortably within its one required senior secured financial covenant and is well within the range of $100-$120 million of annual cash flow for debt reduction that we discussed on our 2008 third quarter conference call.”

The company has announced plans to close four plants around the country by the end of September and eliminate 650 jobs as part of the $90 million savings goal. It also plans to lay off 60 workers at a fifth plant.

The closures and layoffs come on the heels of four plant closures last year and one planned in the first quarter of this year.

Graphic Packaging has debt of $3.25 billion and reported a loss of $14.4 million at the end of the third quarter.

The company will release its fourth-quarter and full 2008 results Feb. 27.

In December NYSE officials delisted Atlanta-based Spectrum Brands — which filed for federal bankruptcy protection last week — after it failed to meet minimum share price and market cap requirements.

The Nasdaq Stock Market, delisted four other Georgia-based firms last year, including Atherogenics, Omni Financial Services, Verso Technologies and Vyyo.