Caraustar Industries announced that revenues for the first quarter ended were $222.2 million, a decrease of 4.7 percent from revenues of $233.1 million for the same time last year.
Net income for the quarter was $499,000, compared to first quarter 2001 net loss of $10.8 million.
System volume increased 4.9 percent, compared with the fourth quarter of 2001 that supported a $9.4 million pre-tax income gain. Energy and fiber cost declines could not offset paperboard selling price decreases and as a consequence gross paperboard mill margins dropped $5 per ton.
Margins on tubes and cores increased $18 per ton due primarily to an improved mix of business compared to the 2001 fourth quarter.
Commenting on first quarter 2002 performance, Thomas Brown, president and CEO of Caraustar, noted, "Before restructuring charges and refinancing costs, Caraustar's pre-tax income improved $6.1 million compared with the first quarter of 2001. Essentially all of these gains came through improved operating income, both from consolidated businesses and joint ventures. Despite a 3.6 percent overall volume gain, sales declined 4.7 percent due entirely to price erosion across most product lines. Cost of goods sold decreased $13 million and selling, general and administrative costs declined $2.7 million.
"The mill system shipped an additional 9,100 tons in the quarter over last year's first quarter, an increase of 4.2 percent, and although price erosion continued throughout the year, those declines were more than offset by efficiency and productivity gains coupled with raw material and energy price and usage reductions.