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Raw Material Costs Drive Down G-P Profits

October 27, 2005

Georgia-Pacific Corp., the world's top maker of paper towels and toilet paper, reported a 40% dip in profits during the third quarter. The decrease from $240 million to $145 million  was blamed on rising energy and raw material prices with expanded operating expense by $105 million during the quarter. Sales were slightly lower at $4.71 billion.  Consumer products sales edged up 4% to $1.5 billion in North America but declined 4% to $479 million overseas. Packaging sales fell 6% to $739 million, and pulp and paper sank 8% to $536 million. Sales of building products were nearly flat at $1.82 billion.

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