Caraustar Industries, Inc.,
The stop of production at four paper mills accounted for $9.3 million of the decrease in sales, according to a news release from the company. Income from continuing operations for the third quarter of 2007 was $1.1 million, or $0.04 per share, compared to 2006 third quarter loss from continuing operations of $3.8 million, or $0.13 per share.
On Oct. 2, 2007, Caraustar completed the sale of the assets of its composite can and plastics businesses to the Sonoco Products Co. for $20.2 million dollars. The company recognized a pretax impairment loss of $10.3 million in the third quarter 2007 and reflected the results of these operations in the accompanying financial statements as discontinued operations for all periods presented. Proceeds from the sale of the assets were used to reduce the company’s debt.
Total paperboard controlled volume (Caraustar mill tons sold plus outside paperboard purchased) for the third quarter of 2007 decreased approximately 47.6 thousand tons, or 16.9 percent, compared to the same quarter last year. The volume decrease was in part attributable to the company’s exit of the Sprague,
Gypsum facing paper volume, including volume at the company’s Sweetwater paperboard mill, declined 15.9 percent compared to the same quarter last year. Offsetting this shortfall, overall production at the gypsum facing paper mills exceeded prior year as the company leveraged its flexibility in producing other paperboard grades. Caraustar’s 50-percent interest in the Premier Boxboard Limited (PBL) mill contributed $425 thousand in equity in income of unconsolidated affiliates for the third quarter 2007 compared to $1.5 million for the same period a year ago. This reduction is due to a decline in demand in the wallboard business, the result of a weaker housing market.
More information and a complete financial report is available at www.caraustar.com.