Caraustar Sees Down Quarter

Caraustar Industries, Inc. expects first quarter 2000 results to be approximately $0.10 to $0.12 per share below the $0.36 per share reported in the fourth quarter of 1999, excluding restructuring charges. The company has continued to experience lower unit sales volume that began in December of 1999. Seasonal and weather related slowdowns in gypsum facing paper shipments will result in about a 9,000-ton reduction in unit volume for the first quarter compared to the fourth quarter of 1999. Increases in recovered fiber costs in February and March temporarily squeezed operating margins by about $10 per ton compared to the fourth quarter of 1999. The loss at the company's Sprague, Connecticut paperboard mill is also expected to widen by approximately $1.0 million in the first quarter compared to the fourth quarter of 1999 as a result of a week long shut down for boiler repairs and continued margin pressures.