<PAGE>

                                                                          Part I

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

           (X) Quarterly Report Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

                For the quarterly period ended September 30, 2003

          ( ) Transition Report Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

                 For the transition period from_________________
                               to ________________

                         COMMISSION FILE NUMBER 0-08791

                            PVC CONTAINER CORPORATION
           ----------------------------------------------------------
          (Exact name of registrant as specified in its charter)

              Delaware                                   13-2616435
  --------------------------------                    ------------------
   (State or other jurisdiction of                     (I.R.S. Employer
   incorporation or organization)                    Identification No.)

               2 Industrial Way West, Eatontown, New Jersey 07724
           ----------------------------------------------------------
              (Address of principal executive offices and zip code)

        Registrant's telephone number, including area code (732) 542-0060

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

                                             Yes  (X)   No ( )

Indicate by check mark by the Registrant is an accelerated filer (as defined
in Rule 12b-2 of the Exchange Act.)

                                             Yes  ( )   No (X)

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the close of the period covered by this report.

      Class                                 Outstanding at September 30, 2003
---------------------                       ---------------------------------
Common $.01 par value                                7,042,393 shares


<PAGE>

                                                                          Part I

                                    CONTENTS

<TABLE>
<CAPTION>
                                                                                                    PAGE
                                                                                                     NO.
                                                                                                    ----
<S>                                                                                                 <C>
PART I.      FINANCIAL INFORMATION

             Consolidated Balance Sheets-September 30, 2003 and June 30, 2003                         3

             Consolidated Statements of Operations-Three Months Ended September 30, 2003 and
                2002 (Unaudited)                                                                      4

             Consolidated Statements of Cash Flows-Three Months Ended
                September 30, 2003 and 2002 (Unaudited)                                               5

             Notes to Consolidated Financial Statements (Unaudited)                                  6-12

             Item 2.  Management's Discussion and Analysis of Financial Condition and Results of
                Operations                                                                          13-14

             Item 3.  Quantitative and Qualitative Disclosure About Market Risk                       15

PART II.     OTHER INFORMATION

             Item 4.  Controls and Procedures                                                         15

             Item 6.  Exhibits and Reports on Form 8-K                                                16

             Signatures                                                                               17

             Certification                                                                          18-19

             Additional Exhibits                                                                      20
</TABLE>

<PAGE>

                                                                          Part I
                            PVC Container Corporation

                           Consolidated Balance Sheets
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                          SEPTEMBER         JUNE
                                                                          30, 2003        30, 2003
                                                                        -----------------------------
<S>                                                                     <C>             <C>
ASSETS
Current assets:
 Cash and cash equivalents                                              $     483,689   $     673,055
 Accounts receivable, net                                                  11,269,473      12,398,916
 Inventories, net                                                          13,243,613      12,525,741
 Prepaid expenses and other current assets                                  1,846,061       1,255,440
 Deferred income taxes                                                      1,658,154       1,658,154
                                                                        -----------------------------
Total current assets                                                       28,500,990      28,511,306

Properties, plant and equipment at cost, net                               30,790,295      30,297,375
Goodwill, net of accumulated amortization                                   3,296,298       3,296,298
Other assets                                                                  310,659         339,212
                                                                        -----------------------------
                                                                        $  62,898,242   $  62,444,191
                                                                        =============================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Accounts payable                                                       $   8,008,169   $   8,132,728
 Accrued expenses                                                           2,317,247       2,675,908
 Current portion of long-term debt                                          3,643,762       3,351,266
                                                                        -----------------------------
Total current liabilities                                                  13,969,178      14,159,902

Long-term debt                                                             27,296,809      26,480,888
Interest rate swap                                                            452,908         543,436
Deferred income taxes                                                       2,460,828       2,423,711

Stockholders' equity:
 Preferred stock, par value $1.00, authorized 1,000,000 shares, none
   issued
 Common stock, par value $.01, authorized 10,000,000 shares,
   7,044,655 shares issued and outstanding as of September 30, 2003
   and June 30, 2003, respectively                                             70,446          70,446
 Capital in excess of par value                                             3,810,981       3,810,981
 Retained earnings                                                         15,109,103      15,280,249
 Accumulated other comprehensive loss                                        (267,216)       (320,627)
 Treasury stock, at cost (2,262 shares at September 30,
 2003 and June 30, 2003)                                                       (4,795)         (4,795)
                                                                        -----------------------------
Total stockholders' equity                                                 18,718,519      18,836,254
                                                                        -----------------------------
                                                                        $  62,898,242   $  62,444,191
                                                                        =============================
</TABLE>

See accompanying notes.

                                                                               3

<PAGE>

                                                                          Part I

                            PVC Container Corporation

                      Consolidated Statements of Operations
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                           THREE MONTHS ENDED
                                                              SEPTEMBER 30
                                                   ---------------------------------
                                                       2003                2002
                                                   ---------------------------------
<S>                                                <C>               <C>
Net sales                                          $   21,229,348    $    21,336,996

Cost and expenses:
   Cost of goods sold (exclusive of
     depreciation and amortization expense
     shown separately below)                           16,963,730         17,543,569
   Selling, general and administrative expenses         2,436,857          2,277,619
   Depreciation and amortization                        1,514,336          1,461,242
   Provision for restructuring                            116,271
                                                   ---------------------------------
                                                       21,031,194         21,282,430
                                                   ---------------------------------
Income from operations                                    198,154             54,566

Other income (expense):
   Interest expense                                      (488,232)          (482,795)
   Other income                                                               86,830
                                                   ---------------------------------
                                                         (488,232)          (395,965)
                                                   ---------------------------------
Loss before
   benefit for income taxes                              (290,078)          (341,399)

Benefit for income taxes                                  118,932            139,974
                                                   ---------------------------------
Net loss                                           $     (171,146)   $      (201,425)
                                                   =================================

Loss per share
   Basic and Diluted                              ($         0.02)  ($          0.03)
</TABLE>

See accompanying notes.

                                                                               4

<PAGE>

                                                                          Part I
                            PVC Container Corporation

                      Consolidated Statements of Cash Flows
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                            THREE MONTHS ENDED
                                                                               SEPTEMBER 30
                                                                         2003               2002
                                                                      -------------------------------
<S>                                                                   <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)                                                     $    (171,146)  $      (201,425)
Adjustments to reconcile net income (loss) to net cash provided by
   operating activities:
     Depreciation and amortization                                        1,514,336         1,461,242
     Amortization of deferred financing costs                                44,125            39,127
     Deferred income taxes                                                                    445,899

     Changes in assets and liabilities:
       Accounts receivable, net                                           1,129,443         1,401,727
       Inventories                                                         (717,872)         (401,955)
       Prepaid expenses and other current assets                           (590,621)         (503,056)
       Other assets                                                           4,428             4,424
       Accounts payable and accrued expenses                               (483,220)          600,922
       Income taxes payable                                                                  (775,900)
                                                                      -------------------------------
Net cash provided by operating activities                                   729,473         2,071,005

CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures                                                     (2,007,256)       (1,429,141)
                                                                      -------------------------------
Net cash used in investing activities                                    (2,007,256)       (1,429,141)
                                                                      -------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from revolving credit line                                     434,624
Proceeds from long-term debt                                              1,519,670         1,736,000
Payment on indebtedness                                                    (845,877)       (2,761,822)
Deferred financing costs                                                    (20,000)          (20,000)
                                                                      -------------------------------
Net cash provided by (used in) financing activities                       1,088,417        (1,045,822)
                                                                      -------------------------------

Net decrease in cash and cash equivalents                                  (189,366)         (403,958)
Cash and cash equivalents at beginning of period                            673,055           657,123
                                                                      -------------------------------
Cash and cash equivalents at end of period                            $     483,689   $       253,165
                                                                      ===============================

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest paid                                                         $     488,916   $       480,653
                                                                      ===============================

Income taxes paid                                                     $     250,825   $       635,925
                                                                      ===============================
</TABLE>

See accompanying notes.

                                                                               5

<PAGE>

                                                                          Part I
                            PVC Container Corporation

                   Notes to Consolidated Financial Statements

Note 1   Description of Business

         General

         PVC Container Corporation (the "Company") was incorporated in Delaware
         in 1968. The Company's major business activity consists of the
         manufacture and sale of a line of plastic bottles ("bottles") made from
         polyvinyl chloride ("PVC") compounds, high-density Polyethylene
         ("HDPE") and polyethylene terephthalate ("PET") resins. The Company
         sells these bottles through Novapak Corporation, which is a
         wholly-owned subsidiary. Another wholly-owned subsidiary, Airopak
         Corporation, produces bottles that are fluorinated to improve the
         chemical resistance and barrier properties. All of these bottles are
         used primarily for the packaging of cosmetics, toiletries, foods,
         household chemicals, lawn and garden and industrial chemical products.

         The Company produces and sells PVC compounds through its wholly-owned
         subsidiary, Novatec Plastics Corporation, Inc. These compounds are used
         by the Company or sold to other plastic bottle manufacturers whose
         products compete with those produced by the Company.

         During the last several years, the Company has endeavored to diversify
         its PVC compound business. For example, the Company has developed and
         begun to sell several categories of specialty PVC compounds for
         non-bottle applications including extruded profiles and accessories,
         furniture, molding and other indoor fixtures, and a variety of
         injection molded electrical and electronic housings.

Note 2   Basis of Presentation

         The accompanying unaudited consolidated financial statements have been
         prepared in accordance with accounting principles generally accepted in
         the United States for interim financial reporting, pursuant to the
         rules and regulations of the Securities and Exchange Commission. In the
         opinion of the Company, the accompanying consolidated financial
         statements contain all adjustments (consisting of only normal recurring
         adjustments) necessary to present fairly the financial position as of
         September 30, 2003, and the results of operations and cash flows for
         the three month periods ended September 30, 2003 and 2002.

                                                                               6

<PAGE>

         While the Company believes that the disclosures presented are adequate
         to make the information not misleading, these consolidated financial
         statements should be read in conjunction with the financial statements
         and the notes included in the Company's annual report on Form 10-K for
         the fiscal year ended June 30, 2003.

         Diluted earnings per share are based on the average number of common
         shares outstanding during each period, assuming exercise of all stock
         options having exercise prices less than the average market price of
         the common stock using the treasury stock method. The weighted average
         number of shares of Common Stock used in computing basic and diluted
         earnings (loss) per share were as follows:

<TABLE>
<CAPTION>
                                         THREE MONTHS ENDED
                                            SEPTEMBER 30
                                       ---------------------
                                         2003        2002
                                       ---------------------
<S>                                    <C>         <C>
Weighed average common shares
  outstanding used to calculate
  basic earnings (loss) per share      7,042,393   7,042,393
Net effect of dilutive securities
  based upon the treasury stock
  method using an average market
  price                                        -           -
                                       ---------------------
Weighed average common and dilutive
  securities outstanding used to
  calculate diluted earnings (loss)
  per share                            7,042,393   7,042,393
                                       =====================
</TABLE>

         The accompanying consolidated financial statements include the accounts
         of PVC Container Corporation and its wholly-owned subsidiaries Novapac
         Corporation, Novatec Plastics Corporation, Marpac Industries, Inc.,
         Airopak Corporation, and PVC Container International Sales Corporation,
         a foreign sales company incorporated in the U.S. Virgin Islands in
         1993. All inter-company accounts have been eliminated.

Note 3   Stock-Based Compensation

         In December 2002, the FASB issued Statement No. 148, "Accounting for
         Stock-Based Compensation -- Transition and Disclosure." SFAS 148 amends
         Statement No. 123, "Stock-Based Compensation" (SFAS 123), to provide
         alternative methods of transition for a voluntary change to the fair
         value based method of accounting for stock-based employee compensation.
         In addition, this Statement amends the disclosure requirements of SFAS
         123 to require prominent disclosures in both

                                                                               7

<PAGE>

         annual and interim financial statements about the method of accounting
         for stock-based employee compensation and the effect of the method used
         on reported results. The disclosure provisions of SFAS 148 are
         effective for periods ending after December 15, 2002 and have been
         incorporated as below.

         As permitted by SFAS 123, the Company has elected to follow the
         intrinsic value method under Accounting Principle Board Opinion No. 25,
         "Accounting for Stock Issued to Employees" (APB 25), and related
         interpretations in accounting for its employee stock option plans.
         Under APB 25, no compensation expense is recognized at the time of
         option grant when the exercise price of the Company's employee stock
         options equals the fair market value of the underlying common stock on
         the date of grant.

         The following table illustrates the effect on net loss and net loss per
         common share as if the Company had applied the fair value method to
         measure stock-based compensation, required under the disclosure
         provisions of SFAS 123:

<TABLE>
<CAPTION>
                                        THREE MONTHS ENDED
                                           SEPTEMBER 30
                                      -----------------------
                                        2003         2002
                                      -----------------------
<S>                                   <C>          <C>
Net loss, as reported                 $(171,146)   $(201,423)
Add: Stock-based compensation
Included in reported net loss, net
of tax                                       --           --
Deduct: Stock-based compensation
  expense under fair value
  reporting, net of tax                  (6,507)     (10,159)
                                      ----------------------
Pro forma net loss                    $(177,653)   $(211,582)

Loss per share:
  Net loss, as reported:
     Basic                            $   (0.02)   $   (0.03)
     Diluted                          $   (0.02)   $   (0.03)
  Pro forma net loss:
     Basic                            $   (0.03)   $   (0.03)
     Diluted                          $   (0.03)   $   (0.03)
</TABLE>

Note 4   Impact of Recently Issued Accounting Standards

         In January 2003, the FASB issued Interpretation No. 46, "Consolidation
         of Variable Interest Entities" (FIN 46). FIN 46 is the interpretation
         of Accounting Research Bulletin No. 51, "Consolidated Financial
         Statements", which addresses consolidation by business enterprises of
         variable interest entities. FIN 46 is effective immediately for all
         variable interest entities created after January 31, 2003 and becomes
         effective for the Company on October 1, 2003 for variable interest
         entities in which it holds a variable interest that it acquired before
         February 1, 2003. The Company does not expect the adoption of FIN 46 to
         have an impact on its financial position, results of operations and
         cash flows.

                                                                               8

<PAGE>

         In April 2003, the FASB issued SFAS No. 149, "Amendment of Statement
         133 on Derivative Instruments and Hedging Activities" (SFAS 149). This
         statement amends and clarifies financial accounting and reporting for
         derivative instruments, including certain derivative instruments
         embedded in other contracts (collectively referred to as derivatives)
         and for hedging activities under SFAS No. 133, "Accounting for
         Derivative Instruments and Hedging Activities" (SFAS 133). SFAS 149 is
         effective for contracts entered into or modified after June 30, 2003
         and hedging relationships designated after June 30, 2003. Certain
         provisions of SFAS 149 relating to SFAS 133 implementation issues that
         have been effective for prior fiscal quarters will continue to be
         applied in accordance with their respective effective dates. The
         Company's financial position, results of operations and cash flows were
         not impacted by the adoption of SFAS 149.

         In May 2003, the FASB issued SFAS No. 150, "Accounting for Certain
         Financial Instruments with Characteristics of both Liabilities and
         Equity" (SFAS 150). SFAS 150 establishes standards for classification
         and measurement of certain financial instruments with characteristics
         of both liabilities and equity. SFAS 150 was effective for all
         financial instruments created or modified after May 31, 2003, and
         otherwise effective at the beginning of the first interim period
         beginning after June 15, 2003; SFAS 150 has been deferred indefinitely
         with respect to mandatorily redeemable non-controlling interests.

                                                                               9

<PAGE>

Note 5   Inventories consist of:

<TABLE>
<CAPTION>
                                       SEPTEMBER        JUNE
                                       30, 2003        30, 2003
                                     ----------------------------
<S>                                  <C>             <C>
Raw materials                        $  5,359,244    $  6,023,810
Finished goods                          7,292,569       6,264,247
Reserves                                 (969,995)     (1,036,762)
                                     ----------------------------
Total FIFO inventories                 11,681,818      11,251,295

Molds for resale, in production         1,067,412         840,605
Supplies                                  494,383         433,841
                                     ----------------------------
                                     $ 13,243,615    $ 12,525,741
                                     ============================
</TABLE>

Note 6   PNC Bank Agreement

         The Company entered into a senior secured credit facility up to
         $43,750,000 ("PNC Bank Agreement") with PNC Bank in August 2000. The
         credit facility is structured as a five year $25,000,000 senior
         revolving credit facility, a five year $12,183,000 senior term loan, a
         five year $4,192,000 standby letter of credit and a $2,000,000 capital
         expenditure line. The credit facility contains annual minimum equity
         and fixed charge coverage covenants with which the Company was in
         compliance at September 30, 2003.

         The term loan bears interest at LIBOR plus 300 basis points and the
         revolving line bears interest at LIBOR plus 250 basis points. The
         Company entered into interest-rate swap agreements to effectively
         convert a portion of the floating term loan debt interest to a fixed
         rate. The $2 million capital expenditure line of credit bears interest
         at LIBOR plus 300 basis points. Borrowings under the PNC Bank Agreement
         totaled approximately $17.4 million at September 30, 2003.

                                                                              10

<PAGE>

Note 7   The Company currently has two reportable segments identified by
         product type: Plastic Containers and Compound. The Plastic Containers
         segment manufactures custom designed PET, HDPE and PVC containers
         mainly for cosmetics, toiletries, foods, household chemicals, lawn and
         garden and industrial chemical products. The Compound segment
         manufactures PVC compound for use by the Company and sale to external
         customers.

         The reportable segments are each managed separately due to their
         different manufacturing processes and the different strategic markets
         in which each operates. The Company evaluates each segment's
         performance based on profit or loss from operations before income
         taxes. The accounting policies for the reportable segments are the same
         as those for the Company. Intersegment sales and transfers are recorded
         at market prices.

         Information on segments and a reconciliation to consolidated totals are
         as follows:

<TABLE>
<CAPTION>
                                                         THREE MONTHS ENDED
                                                            SEPTEMBER 30
                                                  ---------------------------------
                                                        2003              2002
                                                  ---------------------------------
<S>                                               <C>               <C>
Net revenues:
  Company total                                   $    5,191,125    $    6,300,844
  Intersegment revenue - Compound                     (1,528,975)       (1,872,711)
                                                  --------------------------------
  Revenues from external customers - Compound          3,662,150         4,428,133

  Plastic containers                                  17,567,198        16,908,863
                                                  --------------------------------
Total consolidated net revenues                   $   21,229,348    $   21,336,996
                                                  ================================

Net income (loss):
  Compound                                        $      201,467    $       80,033
  Plastic containers                                    (372,613)         (281,458)
                                                  --------------------------------
Total consolidated net loss                       $     (171,146)   $     (201,425)
                                                  ================================

Total assets:
  Compound                                        $    5,725,725    $    6,175,064
  Plastic containers                                  57,172,518        53,677,771
                                                  --------------------------------
Total consolidated assets                         $   62,898,243    $   59,852,835
                                                  ================================
</TABLE>

                                                                              11
<PAGE>

Note 8   Comprehensive Loss

         The following table sets forth comprehensive income (loss) for the
three month periods ended September 30, 2003 and 2002:

<TABLE>
<CAPTION>
                                             THREE MONTHS ENDED
                                                SEPTEMBER 30
                                          -------------------------
                                            2003            2002
                                          -------------------------
<S>                                       <C>             <C>
Net loss                                  $(171,146)      $(201,425)
Unrealized gain (loss) on interest
  rate swap, net of taxes                    53,411        (105,451)
                                          ---------       ---------
Comprehensive loss                        $(117,735)      $(306,876)
                                          =========       =========
</TABLE>

Note 9   Provision for Restructuring

         During the quarter ending September 30, 2003, the Company recorded a
         $116,000 pre-tax charge for restructuring related to the transfer of
         some of the personnel and most of the equipment at its Marpac
         Industries subsidiary located in Kingston, NY to its Philmont, NY
         plant. The Kingston facility will be converted to a warehouse. While
         successful at broadening our customer and product mix at our technical
         blow molding business at Marpac, we continue to see a consolidation in
         sales for our larger EBM customers. As a result, we have initiated this
         plan to rationalize some of EBM and Marpac capacity. When completed, we
         expect to improve capacity utilization significantly at Philmont, while
         reducing the combined headcount which will result in a significant
         profit improvement during this current fiscal year. The workforce
         reduction includes 58 employees of which 29 are direct labor, 27
         indirect labor and 2 administrative.

         The total restructuring cost is estimated to be $250,000, of which
         $116,000 has been incurred and recognized during quarter ended
         September 30, 2003, which includes $43,000 for severance, and other
         personnel related costs for 38 employees and $73,000 for equipment
         relocation and other transfer costs. We expect this restructuring to be
         substantially completed by the end of the second quarter of our fiscal
         year. These costs are reflected in our plastic container segment of our
         business. In addition, the plastic container segment experienced
         manufacturing inefficiencies related to the move. These additional
         costs are reflected in cost of goods sold.

                                                                              12
<PAGE>

                            PVC CONTAINER CORPORATION

Item 2: Management's Discussion and Analysis of Financial Condition and Results
of Operations

RESULTS OF OPERATIONS

Net sales for the three-month period ended September 30, 2003, were $21,229,000,
compared to $21,337,000 for the three-month period ended September 30, 2002.
Although total sales volume remained level, our plastic container segment showed
continued growth. General line HDPE and PVC extrusion blown bottle sales were
12.3% lower than last year. Strong growth was reflected in PET bottles by 51.3%
as compared to last year, a line of business that the Company continues to
expand its market share. However, the Company's technical and specialty bottle
group experienced an 8.6% decline during the three month period ended September
30, 2003, as compared to the same period a year ago. Our Novatec plastic
compound segment experienced a decrease of 17.3% in sales volume from the same
period last year, due to an overall weaker demand for rigid PVC compounds during
this first quarter of our fiscal year.

Cost of goods sold for the three months ended September 30, 2003, was
$16,964,000, or 79.9% of net sales, compared to $17,544,000, or 82.2% of net
sales, for the three months ended September 30, 2002. This decrease is mainly
attributed to improved product mix, higher margins resulting from increased
emphasis on cost containment, continued reductions in manufacturing overhead,
and decreased raw material costs. Also, the addition of new capacity for our new
PET bottle line was substantially completed during the latter part of the fiscal
year ended June 30, 2003, so the Company was not burdened with the related
start-up expenses during the three months ended September 30, 2003.

Selling, general and administrative ("SG&A") expenses increased by $159,000 in
the first quarter of fiscal 2004 compared to the same period last year. For the
quarter ended September 30, 2003, SG&A expenses were $2,437,000, or 11.5% of net
sales, compared to $2,278,000 or 10.7% of net sales for the quarter ended
September 30, 2002. This increase is mainly attributable to increased personnel
costs and related benefits in both our marketing and administrative functions to
support the execution of a marketing strategy designed to grow the Company's
business.

Depreciation and amortization expense increased to $1,514,000 for the three
months ended September 30, 2003, compared to $1,461,000 for the three months
ended September 30, 2002. The primary cause for the increase is the additional
depreciation associated with the new capacity in our PET bottle line.

The Company recorded a $116,000 pre-tax charge for restructuring related to the
transfer of some of the personnel and most equipment from its Kingston, New York
facility to its Philmont, New York plant and the conversion of the Kingston
facility to a warehouse. Management expects the restructuring to be completed by
the end of the second quarter of our fiscal year.

                                                                              13
<PAGE>

Income from operations increased $143,000 during the three-month period ended
September 30, 2003, compared to the same period a year ago. For the three-month
period ended September 30, 2003, income from operations was $198,000, or 0.9% of
net sales, compared to $55,000, or 0.3% of net sales, for the three months ended
September 30, 2002. This increase in operating income is principally due to the
same factors that enabled the Company to reduce cost of goods sold during the
first quarter.

For the three months ended September 30, 2003, net interest expense was
$488,000, compared to $483,000 for the three months ended September 30, 2002.
This $5,000 increase is attributable to increased borrowings for working capital
requirements.

Net loss for the quarter ended September 30, 2003, decreased to $171,000, or
$.02 on a diluted earnings per share basis, compared to a net loss of $201,000,
or $.03 on a diluted earnings per share basis, for the same period a year ago.

LIQUIDITY AND CAPITAL RESOURCES

Because Management generally does not monitor liquidity and capital resources on
a segment basis, this discussion is presented on a consolidated basis.

The Company's liquidity position and working capital remained adequate for the
three-month period ended September 30, 2003. Net working capital as at September
30, 2003, increased by $181,000 to $14,532,000 since June 30, 2003. The current
ratio of assets to liabilities was 2.0 at both September 30, 2003, and June 30,
2003. There is no major factor causing this minimal change in working capital.

During the three month period ended September 30, 2003, the Company generated
net cash from operating activities of $729,000, and proceeds from our revolving
credit line and additional long term debt of $1,954,000. These funds were
primarily used to acquire capital assets of $2,007,000 and reduce long term debt
by $846,000.

Cash used for capital assets increased $578,000 as compared to the same period a
year ago. This increase attributed to additional capacity to support our PET
bottle line.

Cash used for accounts payable and accrued expenses during the three month
period ended September 30, 2003, was $483,000, a decrease of $1,084,000 from the
corresponding period of the prior year. This decrease is primarily related to
the payment of pre-purchased raw material inventories for price protection at
June 30, 2003 for future use payable within terms during this quarter.

Assets held for sale, consisting of the Company's Ardmore, Oklahoma facility,
totaled approximately $262,000 at September 30, 2003. During fiscal 2003, the
Company reduced the carrying value of such assets to reflect the estimated fair
value, less disposition costs. Management expects to sell these assets and
receive proceeds that will approximate fair value during fiscal 2004.

                                                                              14
<PAGE>

The Company's short term liquidity and short term capital resources are
projected to be adequate to allow the Company to continue to meet its financial
obligations. The Company believes the financial resources available to it,
including internally generated funds and borrowing under our revolving credit
facility, will be sufficient to meet foreseeable working capital requirements.
At September 30, 2003, the Company had unused sources of liquidity consisting of
cash and cash equivalents of $484,000 and unused credit (available to borrow)
under a revolving credit facility of $5,630,000.

The Company utilizes its revolving loan facilities for seasonal working capital
needs and for other general corporate purposes. Amounts available under the
Company's revolving loan facilities in excess of seasonal working capital needs
may be used to pursue the Company's growth strategy and for other permitted
purposes.

SFAS No. 133

Effective July 1, 2000, the Company was required to adopt SFAS No. 133,
"Accounting for Derivative Instruments and Hedging Activities." At September 30,
2003, the Company recorded an interest swap liability for $452,908 and equity
was reduced by $267,216 (net of tax). This was a non-cash event and has no
impact on the Company's bank covenants.

Item 3: Quantitative and Qualitative Disclosures About Market Risk

Market risks relating to our operations result primarily from changes in
interest rates. Interest rate pricing transactions are used only to the extent
considered necessary to meet our objectives. We do not utilize derivative
financial instruments for trading or other speculative purposes.

Our interest rate risk management objective is to limit the impact of interest
rate changes on our net income and cash flow and to reduce our overall borrowing
cost. We use variable rate swap agreements to manage our exposure to interest
rate fluctuations. These agreements effectively convert variable interest rates
to fixed rates, enabling the Company to predict interest expense and avoid the
risk of dramatic rate fluctuations. We have entered into these agreements with
banks under our senior secured credit facility.

PART II - OTHER INFORMATION

Item 4:  Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The Company has evaluated the effectiveness of its disclosure controls and
procedures, as defined in Rule 13a-14 under the Securities Exchange Act of 1934,
as of a date (the "evaluation date") within ninety (90) days prior to the filing
date of this report. Based upon that evaluation, the Company, as of the
evaluation date, believes disclosure controls and procedures were effective in
ensuring that all

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material information relating to the Company, including its consolidated
subsidiaries, required to be filed in this quarterly report has been made known
in a timely manner.

Changes in Internal Controls

There have been no significant changes made in the Company's internal controls
or in other factors that could significantly affect internal controls subsequent
to the evaluation date.

Item 6: Exhibits and Reports on Form 8-K

(a)     Exhibits

31.1    Certification of Phillip L. Friedman, President, Chief Executive
        Officer, s Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of
        2002

31.2    Certification of Jeffrey A. Shapiro, Senior Vice President, Chief
        Financial Officer, as Adopted Pursuant to Section 302 of the
        Sarbanes-Oxley Act of 2002

32      Certification of Pillip L. Friedman, Chief Executive Officer, and
        Jeffrey A. Shapiro, Chief Financial Officer, pursuant to 18 U.S.C.
        Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley
        Act of 2002.

(b)  Reports on Form 8-K

     Report on Form 8-K was filed by the Registrant during the three months
     ended September 30, 2002:

     Certification of the Chief Executive Officer and the Chief Financial
     Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
     96 of the Sarbanes-Oxley Act of 2002.

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                                   Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

         Date: November 19, 2003           PVC Container Corporation
                                           /s/Phillip L. Friedman
                                           Phillip L. Friedman
                                           President and Chief Executive Officer

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