The biggest threat to our economy comes from paper towels: The biggest economic driver of GDP growth since the Great Recession is just about all the paper towels you have, the paper towel manufacturer says.
“We think the biggest driver of productivity growth is the paper we use,” Michael G. Hennessey, chief executive of Hennesys paper towels business, told analysts in an earnings call Thursday.
“It’s the paper that we use every day, the packaging that we put in our bags, the food we eat.
It’s all that we buy.”
He also cited the “drastically increased” use of paper towels and other products by U.N. agencies, as well as the increasing use of online shopping.
Hennesys reported a loss of $6.4 billion in the first quarter of this year.
In its earnings call, Hennesks board said its total revenue was $1.8 billion for the quarter ended Sept. 30.
The company’s revenue growth for the first nine months of the year was 8.5%, compared with a loss a year earlier.
Its revenue in the United States grew 3.5% in the quarter, according to Thomson Reuters I/B/E/S, a gauge of companies’ financial health.
Overall, paper towels accounted for about a quarter of all revenue for HennesYS, and its revenue from the U,S.
was about 4% of its total U.K. revenue.
The company also reported strong gains in the U-K.
For its full-year results, Hennys reported sales of $1,200 million and adjusted earnings per share of $0.07, compared with $0 for the year earlier, which was down from a year ago.
Shares of Hennies closed down 3.1% to $34.99.