Caraustar Industries, Inc. announced that revenues for the fourth quarter were $239.5 million, a decrease of 5.0 percent from revenues of $252.0 million for the same quarter in 2002. Loss from operations before restructuring and impairment costs for the quarter was $1 million, a decrease from comparable income from operations of $0.6 million reported for the fourth quarter of 2002. Net loss for the fourth quarter of 2003 was $8.9 million, compared to fourth quarter 2002 net loss of $13.3 million.
The quarterly reduction in net loss from prior year was primarily the result of lower restructuring and impairment costs combined with a $3 million improvement in equity in income from unconsolidated affiliates. The Premier Boxboard unconsolidated joint venture generated $1.9 million of the improvement in equity income due to significantly improved volume in gypsum facing paper sales.
These improvements, however, were partially offset by a decline in consolidated income from operations resulting from lower volume sold by the mill system which was entirely the result of the first quarter 2003 shutdown of Buffalo and Rittman machine #2, combined with lower sales and margins in the carton and custom packaging operations.
For the year, revenues were $992.2 million, an increase of 5.9 percent from revenues of $936.8 million for 2002. The net loss for the year was $27 million, compared to a net loss of $17.9 million the prior year.
Thomas Brown, president and CEO of Caraustar, stated, "Caraustar's overall mill volume increased five percent in 2003, driven by gains in three of its four primary markets. Volume in the tube, core and composite can markets grew 19 percent, 2003 vs. 2002, due primarily to the Smurfit Industrial Products Division acquisition completed at the end of the third quarter in 2002. The acquisition also helped create growth of eight percent in the other specialty businesses. Despite the closing of our Buffalo mill in the first quarter of 2003, gypsum facings volume improved five percent year-over-year on the strength of the continued market gains of the Premier Boxboard joint venture mill. Folding carton mill volume declined four percent for Caraustar in 2003 due to the idling of one of the paper machines at the Rittman, Ohio mill near the end of the first quarter and was influenced by a weaker demand for folding grades in the industry.
"In 2003 the recycled boxboard industry exhibited an overall increase in demand of one percent - a modest growth rate, but, encouraging, as it was the first sign of growth following three years of declines. Gains in gypsum facings, associated with a record year in wallboard sales, and growth of the other specialty grades offset a three percent drop in folding board demand and a flat tube, can and drum market. The industry increased four percent in the fourth quarter 2003, with growth in the other specialty business and gypsum facings offsetting a two percent drop in folding carton board sales. Tube, can and drum demand increased one percent in the quarter.