Home / Knowledge / News / Textiles / Buckeye benefits from lower cotton linter costs

Buckeye benefits from lower cotton linter costs

27
Jan '10
Buckeye Technologies Inc. announced second quarter net income of $46.3 million or $1.18 per share compared to a loss of $125.0 million or ($3.23) per share in the same period last year. Second quarter earnings included net income of $37.5 million, or $0.96 per share, from alternative fuel mixture credits (AFMC) earned during the quarter. During the same quarter of the prior year, the Company's results included a $127.6 million ($3.30 per share) after-tax loss related to a non-cash goodwill impairment charge. Net sales were $183 million for the second quarter of fiscal 2010 compared to $185 million in the second quarter of fiscal 2009.

Excluding income from AFMC, adjusted net income was $8.8 million, or $0.22 per share versus second quarter fiscal 2009 adjusted net income (excluding non-cash goodwill impairment) of $2.6 million, or $0.07 per share. This $0.15 per share increase in earnings compared to the same quarter a year ago was largely due to increased shipment volume, which was up about 9%, and the resulting improvement in capacity utilization. Also contributing to improved earnings were significantly lower raw material costs and other cost reductions at our cotton specialty plants, and reduced interest expense.

Adjusted earnings of $0.22 per share in the just completed quarter were up $0.11 (+100%) compared to the $0.11 earned in the first quarter excluding the impact of AFMC. This improvement in earnings was driven by a significant rebound in our specialty fibers business. Product mix improved as we shifted volume out of the viscose staple fiber market back into our traditional niche markets like casings, tire cord and ethers due to improving demand in those markets. We also benefited from higher viscose staple fiber and fluff pulp pricing, improving volumes at our cotton specialty plants and lower cotton linter costs compared to the first quarter.

Chairman and Chief Executive Officer John B. Crowe said, "We are encouraged by the improving trends in our business, as evidenced by the strong rebound in earnings versus the first quarter and our first year over year gains since the July-September quarter of 2008. We are benefitting from improved demand, a better mix, rising fluff pulp prices and lower interest expense. We continued to reduce our debt during the second quarter to $290 million, with a target of $275 million by the end of our fiscal year in June. We also completed the redemption of $35 million of our 8.5% 2013 senior notes on January 4th using available cash and borrowings on our bank revolver, which we expect to generate annual interest savings of about $2.4 million per year going forward at current interest rates. The Buckeye organization continues to focus on growing sales, reducing costs and maintaining tight control on working capital."

Buckeye Technologies Inc


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 7th Apr 2020

Holding cost will affect apparel manufacturers

That brands may eventually not scrap orders is not necessarily good...

Pic: reddees / Shutterstock.com

Apparel/Garments | On 7th Apr 2020

Commendable decision by international garment buyers

At a time when the world is passing through an unprecedented crisis...

Pic: Shutterstock

Apparel/Garments | On 7th Apr 2020

Over 40 apparel factories in Bangladesh resume production

More than 40 readymade garment (RMG) factories in Bangladesh's Savar, ...

Interviews View All

Prabu Mohanram, Balavigna Weaving Mills Pvt Ltd

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Darshan Mehta, Infinium Polychem

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Varinder Singh Jawanda, Trendy Bharat

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Sham Shah,

Sham Shah

Shamal and Shamal Pvt Ltd is into manufacturing and sales of textile...

Kuldeep Pareek,

Kuldeep Pareek

Italian company Schoch Reeds has been producing high-quality weaving reeds ...

Luciano Sardini,

Luciano Sardini

A consolidated reality in Italy and internationally, IMA Spa is well-known ...

Robin Grankvist, OrganoClick AB

Robin Grankvist
OrganoClick AB

Robin Grankvist talks about PFCs, additives and various chemicals used in...

Georg Reinhold, Trützschler  Nonwovens & Man-Made Fibers

Georg Reinhold
Trützschler Nonwovens & Man-Made Fibers

Trützschler Nonwovens & Man-Made Fibers, a part of the Trützschler Group,...

Mary-Cathryn Kolb, Brrr°

Mary-Cathryn Kolb
Brrr°

Atlanta-based private start-up Brrr° was founded in 2014 to develop...

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...

Ritu Kumar, Label Ritu Kumar

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Adriano Goldschmied, AG Jeans

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

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

Leave your Comments


April 2020

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


Advanced Search