Home / Knowledge / News / Textiles / Sales down 9% at Buckeye in Q3 FY'12
Sales down 9% at Buckeye in Q3 FY'12
25
Apr '12
Buckeye Technologies Inc. announced third quarter adjusted net income of $27.0 million or $0.67 per share, which excludes after-tax restructuring and asset impairment charges of $0.8 million, or $0.02 per share, related to the closure of the cotton linter pulp production line in Americana, Brazil and sale of its converting business in King, North Carolina, and after-tax interest expense of $0.4 million or $0.01 per share related to cellulosic biofuel credits.

Adjusted net income was down 7% as compared to the prior year period's $29.0 million, or $0.71 per share, which excluded after tax costs of $0.3 million, or $0.01 per share, primarily related to accrued interest associated with cellulosic biofuel credits.

Net sales of $217 million were down $21 million or 9% versus last year's third quarter sales of $238 million. About $11 million of the reduction in sales was related to the closure or divestiture of under-performing and non-core assets. Nonwovens sales were down $7 million or 11% year over year excluding the impact of the January 31st divestiture of the Merfin Systems converting business. The primary driver was lower shipment volume in North America.

The $0.04 reduction in adjusted EPS compared to the prior year period was the result of the power outage at the Foley specialty wood fibers mill, which the Company announced in late February. The impact of the King divestiture and Americana plant closure on adjusted EPS compared to the year ago quarter was insignificant. An overall net increase in selling prices combined with lower direct manufacturing costs mostly offset the effect of reduced shipment volume and a less favorable mix.

Comparing the third quarter to the second quarter of fiscal 2012, sales were down $10 million or 4%. About $9 million of this reduction in sales was related to business divestitures and plant closures. Nonwovens sales were down about $1 million due to a weaker Euro and reduced pricing.

While sales volume in Europe was up compared to a seasonally weak second quarter, nonwovens sales volume in North America was down by an offsetting amount. Adjusted operating income was down $1.0 million due to the negative impact of the February power outage at the Foley mill ($2.4 million net of expected insurance proceeds).

The January 1st price increase on our specialty wood pulp grades more than offset lower fluff pulp pricing and a less favorable specialty fibers shipment mix. Costs were relatively stable between the second and third quarters of fiscal 2012. The impact of divestitures and plant closures on operating income between these two quarters was positive $0.3 million. Adjusted EPS of $0.67 was down $0.02 compared to $0.69 in the second quarter due to the $0.04 impact of the February power outage at the Foley mill.

Chairman and Chief Executive Officer John B. Crowe said, "This was a very busy and productive quarter for Buckeye. We completed the energy project and the ground-breaking for the Specialty Expansion Project at our Florida mill; we closed our cotton linter pulp facility in Brazil, and we sold our converting business in King, N.C. All of these activities will improve Buckeye's margins and return on invested capital.


Must ReadView All

Ethiopia’s Kombolcha Industrial Park attracts foreign firms

Apparel/Garments | On 15th Dec 2017

Ethiopia’s Kombolcha Industrial Park attracts foreign firms

Strategic location, modern factory facilities and proximity to the...

Courtesy: 2XU

Apparel/Garments | On 15th Dec 2017

L Catterton Asia announces JV of GXG and 2XU

L Catterton Asia, the Asian unit of the largest and most global...

15 trade associations urge nations to safeguard WTO system

Apparel/Garments | On 15th Dec 2017

15 trade associations urge nations to safeguard WTO system

Fifteen trade and industry associations from across the world have...

Interviews View All

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search