Rock-Tenn
Rock-Tenn Co. reported net sales for the fourth quarter were $385.0 million, up 6.6 percent compared to $361.3 million the prior year. Net income was $10 million for the quarter, compared to $3.2 million the same time last year.
Rock-Tenn's net income in the quarter included $0.4 million from discontinued operations as a result of the previously announced agreement to sell its Plastic Packaging division.
The company reported net sales from continuing operations of $1.4 billion for the fiscal year, a 4.7 percent increase from the previous year. Net income was $29.6 million for the year, compared to $26.6 million in the prior fiscal year.
James Rubright, Rock-Tenn’s chairman and CEO, stated, "Our earnings of $0.28 per share were consistent with our expectations for the quarter. They reflect 15.8 percent higher segment operating income compared to the fourth quarter of fiscal 2002.
“The higher earnings for the quarter reflect strong gains in packaging sales, up 19.9 percent over the prior year quarter, and improved profitability in our display segment. Our increase in sales for the full fiscal year reflects our continuing improvement in our competitive position in all of our businesses. We plan to continue to be the leader in our businesses in investing in technology to lower our costs and improve our quality.
Temple-Inland
Temple-Inland Inc. reported a third quarter loss of $3 million, compared with third quarter 2002 net income of $15 million, and second quarter 2003 net income of $156 million.
The corrugated packaging operation reported break-even income in third quarter, compared with income of $14 million in third quarter 2002 and income of $1 million in second quarter 2003. The decline in earnings compared with third quarter 2002 was primarily attributable to lower box prices, higher energy costs and higher pension expense. Even though box prices and box volumes declined in third quarter 2003 compared to second quarter 2003, income was down only slightly due to improved mill operations and lower costs.
Average prices for boxes in third quarter were down 1 percent compared with third quarter 2002 and second quarter 2003. The cost of OCC was down 26 percent compared with third quarter 2002 and down 5 percent compared with second quarter 2003.
Despite the closure of three box plants, shipments of corrugated containers were flat compared with third quarter 2002. Shipments were down 2 percent during the quarter compare to the prior quarter.
Kenneth Jastrow II, chairman and CEO, said, "Results improved from the second quarter, but continued to reflect challenging business conditions resulting from the sluggish U.S. economy. Cash flow in the quarter allowed us to reduce debt by approximately $70 million. We remain committed to disciplined capital expenditures and are focused on lowering costs.
"Corrugated packaging shipments improved as the quarter progressed with September shipments up 2.3 percent compared with September 2002. These increases occurred even though we have rationalized three box plants since September 2002 to lower cost. In addition, our mills operated at lower costs in the quarter. We will continue to explore opportunities to rationalize additional box plants and further reduce costs in our corrugated packaging operation.
Caraustar
Caraustar Industries announced that revenues for the third quarter ended September 30, 2003 were $253 million, an increase of 6.9 percent from revenues of $236.7 million for the same time last year. Income from operations increased from $0.9 million in the third quarter of 2002 to $9.5 million for the same period in 2003.
The net loss for the third quarter was $1.1 million, compared to last year’s third quarter loss of $4.5 million.
The quarterly improvement was driven by volume associated with the acquisition of the Smurfit Industrial Products Division, higher margins from mill selling price increases (+$13/ton) and lower fiber costs (-$25/ton) that were only partly offset by increased fuel costs (+$13/ton). Gross margin increased from 16.1 percent to 17.6 percent.
"Caraustar's improved performance in the quarter is closely aligned with ongoing growth and rationalization initiatives in our primary businesses," said Thomas Brown, president and CEO. "The company experienced a 20 percent volume gain in the tube and core sector and a 16.6 percent increase in the other specialty market, essentially from the SIPD operations acquired one year ago. The growth was in contrast to an 8 percent industry decline in volume for tubes and cores and a 2.8 percent gain in other specialty products.
"The carton market lost 3.7 percent in volume year-over-year," Brown continued, "while our closure of the Ashland, Ohio plant caused a decrease in Caraustar's volume of 7.4 percent in the sector. The improved contribution from our joint venture gypsum facing paperboard mill is documented below, including volume growth consistent with the industry."
For the first nine months, revenues were $752.8 million, an increase of 9.9 percent from revenues of $684.8 million for 2002. The net loss for the first nine months of 2003 was $18.1 million compared to a net loss of $4.6 million in 2002.
Gross margin was 17.8 percent for the nine-month period, compared to 18.4 percent for the first nine months of 2002 due to lower fiber costs and higher energy costs in 2003.
Norampac
Norampac Inc. reported net income of $15 million in the third quarter of both 2003 and 2002.
For the first nine months of this year Norampac reported net income of $28 million compared to $51 million for the same period in 2002. The results for the nine-month period include an unusual item related to the refinancing of $20 million and a $10 million foreign exchange gain after taxes on long-term debt.
Net sales for the third quarter were $293 million, compared to $318 million for the same quarter in 2002. The decrease is mainly a result of a strong Canadian dollar that translates into lower selling prices on both the containerboard and corrugated products segments.
Shipments of corrugated containers, excluding the recently acquired Schenectady, NY, facility, decreased by 1 percent this quarter compared to the same quarter in 2002. Containerboard shipments increased 0.8 percent this quarter due mainly to the Schenectady acquisition. For the nine-month period net sales were $885 million compared to $918 million for the same period in 2002.
Operating income amounted to $29 million in the third quarter, compared to $37 million for the corresponding quarter in 2002. The reduction is mainly attributable to a 13 percent decrease in the net selling price for containerboard products partially offset by a decrease in the fiber costs and controllable expenses.
For the nine-month period operating income amounted to $73 million compared to $104 million for the same period in 2002.
Alain Lemaire, president and CEO, said: “This quarter has been again challenging considering the effect of a strong Canadian dollar on containerboard pricing and increased downtime. Box demand remains soft and we do not expect prices to increase before any improvement in the demand. The acquisition of the Schenectady facility helped our current results and supported our goal of increasing our integration level.”