News Flash

Sales down 9% at Buckeye in Q3 FY'12

25 Apr '12

4 min read

It was also a challenging quarter due to the power failure in mid-February and subsequent downtime at our Florida facility. This caused our financial performance to come in below the expectations that we shared at our earnings call in January.

"We continue to focus on generating both cash flow and returns on investment above our cost of capital, while taking a balanced approach to the allocation of capital. During the quarter, we used our strong cash flow from operations plus an additional $6 million from the sale of our King converting business to fund $22 million in capital expenditures (up $8 million from the previous quarter), pay down debt by $17 million, and pay a quarterly dividend of $3 million.

“Yesterday, the Board of Directors voted to raise our quarterly dividend to 8 cents per share, and earlier this month, we repurchased another 100,000 shares of our stock for $3.3 million. With our recent moves to address under-performing and non-core assets, we are redirecting the cash and management focus into improving our Nonwovens performance and accelerating growth opportunities like the Foley Specialty Expansion Project. We expect our fiscal year 2012 will be another year of record results helped by our various initiatives."

Buckeye Technologies Inc

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