Olson Industries Reports Loss in 3rd Quarter

Olson Industries, a Sherman Oaks-based maker of plastic packaging goods, reported a third-quarter loss of $984,958 contrasted with a year-earlier loss of $799,960. Olson’s sales declined to $16.2 million from $17.8 million.

Olson’s sole operating unit, Dolco Packaging, is reorganizing under Chapter 11 of the federal bankruptcy laws because of major losses in recent quarters. Under Chapter 11, Dolco is shielded from creditors’ lawsuits while it devises a plan to pay its debts.

The company received another blow early this month when McDonald’s Corp. announced that, due to environmental concerns, it will phase out foam-like packaging for its hamburgers. Olson supplies such packages to McDonald’s, which accounts for about 15% of Olson’s business.

In the first nine months of this year, Olson had a loss of $920,167, contrasted with a year-earlier loss of $2.38 million. Its nine-month sales fell to $52.2 million from $54.8 million.