Home / Knowledge / News / Textiles / Lower nonwovens sales at Buckeye
Lower nonwovens sales at Buckeye
18
Aug '08
Buckeye Technologies Inc announced that net sales in the April-June quarter grew by 7.6% over the prior year to $215.3 million, a new sales record for the Company. Earnings for the quarter were $9.3 million after tax ($0.24 per share, compared with $15.9 million ($0.41 per share) in the prior year.

During the same quarter of the prior year, the Company's results included a $2.0 million pre-tax benefit from a water conservation partnership payment, a $2.1 million pre-tax benefit from reversal of accrued interest related to cancellation of a contingent note owed to Stac-Pac Technologies Inc, and a $3.3 million tax benefit from adjustments relating to federal and state valuation allowances and credits. The combined benefit of these three items on our year ago fourth quarter earnings was $0.15 per share.

Increased selling prices across all of our businesses as compared to the year-ago quarter were sufficient to offset significantly higher raw materials, energy, chemicals and transportation costs.

However, reduced production volumes due to unplanned maintenance outages at our Perry, Florida wood cellulose mill and lower Nonwovens sales were the primary drivers behind a year-over-year reduction in Operating Income of $7.1 million.

Excluding reversal of the accrued Stac-Pac interest that impacted the fourth quarter of last year, our net interest expense was reduced by about $2 million compared to last year mainly due to the reduction in debt.

Also, our effective tax rate of 26.5% for the quarter, while higher than last year's 21.9% rate, was favorably impacted by about $1.3 million in adjustments relating to identification of additional R&D tax credits and tax planning associated with intercompany interest charges to our Brazilian subsidiary.

Net sales for the fiscal year grew 7.3% over the prior year to $825.5 million, also a new sales record for the Company. Earnings for the fiscal year were $47.1 million after tax ($1.20 per share) compared to $30.1 million after tax ($0.79 per share) in the prior year.

Chairman and Chief Executive Officer John B. Crowe said, "Fiscal year 2008 was an outstanding year for Buckeye. Building on the momentum from 2007, we achieved a variety of significant performance milestones, including our highest ever sales revenue, debt below $400 million and EPS up 52% over the prior year.

Due to the unprecedented cost escalation we have experienced over the past 6 months, we have implemented additional price increases and surcharges which went into effect on July 1st.

While oil and natural gas prices have moderated from recent peaks, we are still facing rising cost trends for energy, raw materials, chemicals and transportation in the July-September quarter compared to the April-June quarter."

Mr. Crowe went on to say, "We continue to involve the entire organization in Lean Enterprise as a key strategy to grow our business and improve margins, and we have made progress in eliminating waste and non-value added activities.

Must ReadView All

Textiles | On 28th Mar 2017

India may impose duty on elastomeric filament yarn

The Government of India is likely to impose anti-dumping duty on...

Courtesy: Lee Cooper

Apparel/Garments | On 28th Mar 2017

CCI clears FLFL proposal to divest Lee Cooper

The Competition Commission (CCI) of India has approved the proposal...

Textiles | On 28th Mar 2017

Bardoli CEFC to benefit south Gujarat MSMEs

India’s first common engineering facility centre (CEFC) at Bardoli,...

Interviews View All

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Marten Alkhagen
Swerea IVF AB

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

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search