Fuling Global Inc., a maker of plastic utensils for fast-food restaurants, reported 2018 net income from continuing operations of $9.85 million, up 19 percent over 2017, as lower oil prices helped cut costs. The company also said it is looking for ways to be more environmentally friendly.
The company’s shares rose in extended trading after the report.
China-based Fuling Global said in a statement distributed by PRNewswire after the close of regular U.S. trading that earnings per share from continuing operations were 62 cents. The company has plants in China, Mexico, and Allentown, Pennsylvania.
Chief Executive Officer Xinfu Hu said cost controls and favorable pricing more than offset higher labor expenses.
Sales increased 12 percent to $138.7 million for 2018 from $124.21 million for the prior year. The company said that about 85 percent of its sales are made in the U.S.
Disposable plastic ware has been criticized by environmentalists as a source of pollution. Fuling Global said in the statement that it is looking for ways to increase the use of environmentally-friendly materials, develop biodegradable materials and reduce reliance on fossil fuel-based raw materials.
Fuling Global (NASDAQ: FORK) makes plastic and paper products including disposable cutlery, straws, cups, plates. Its customers include Subway, Wendy’s, Burger King, Taco Bell and Walmart.
Fuling Global shares closed at $2.48 today, down 3 cents, but rose 20 cents in after-hours trading, according to NASDAQ.