Caraustar Industries announced fourth quarter and year-end 2002 results in line with expectations announced earlier this year. Revenues for the fourth quarter were $252 million, an increase of 18.3 percent from revenues of $213 million for the same period in 2001. The company recorded a net loss for the quarter of $13.3 million. The loss was driven primarily by restructuring and nonrecurring charges taken in the quarter.
For the year revenues were $936.8 million, a 4.1 percent increase over revenues of $900.3 million in 2001. The net loss for 2002 was $17.9 million, compared to a net loss of $14.6 million in 2001.
Thomas Brown, president and CEO, stated, "Caraustar made significant strides in 2002 in regaining mill and converting volume, both in comparison with our own performance in 2001 and in contrast to the overall recycled boxboard industry. Total volume for the company increased 8.8 percent compared with 2001, while industry volume declined 2.4 percent.
“Excluding the acquisition of the Smurfit- Stone Container Corporation industrial packaging operations, Caraustar's volume grew 5.6 percent, with the gains primarily in the consumer goods-driven coated boxboard mill system. The demand for industrial products continues to shrink as it has for the last three years, and, as a consequence, the related paperboard markets remain a challenge. The integration of the SSCC facilities has been progressing ahead of plan and is meeting our expectations regarding volume and financial results, despite the sluggish state of the industrial economy.
"The Sprague, Connecticut mill improved year-over-year operating income by slightly more than $8 million in spite of a $5 million decline in gross fiber margin. Sprague was profitable in the fourth quarter.
“Our joint venture wallboard facing paper mill in Indiana doubled its production of gypsum facing paper in 2002, as it became qualified to supply most of our customer base, and is expected to double the quantity of wallboard paper again in 2003.
"As has been previously reported, the critical event of 2002 was the extreme volatility of fiber costs in the second and third quarters followed by the escalation of energy costs in the fourth quarter. On a pre-tax basis the gross fiber margins for the last nine months of 2002 for our complete mill system, compared with the prior year, declined more than $32 million. In the fourth quarter, we saw some pricing improvement, and, even though fiber costs have declined as expected, margins remained over $10 per ton lower than they were in the fourth quarter of 2001.Latest from Recycling Today
- Nucor names new president
- DOE rare earths funding is open to recyclers
- Design for Recycling Resolution introduced
- PetStar PET recycling plant expands
- Iron Bull addresses scrap handling needs with custom hoppers
- REgroup, CP Group to build advanced MRF in Nova Scotia
- Oregon county expands options for hard-to-recycling items
- Flexible plastic packaging initiative launches in Canada
