Roll goods producer Buckeye Technologies Inc., Memphis, TN, has reported financial results for the quarter ended December 31, 2005. Quarterly net sales were $188.3 million, 4% above the $180.6 million in the same quarter of the prior year.
Buckeye earned $1.9 million after tax in the quarter. During the same quarter of the prior year, the company earned $2.9 million after tax, which included $6.6 million after tax in restructuring and impairment costs and a $4.7 million after tax gain from the sale of a building and equipment located at Cork, Ireland.
"Business conditions continued to be very challenging during October-December,” stated Buckeye chairman David Ferraro. “While we are pleased that we achieved sales growth, continuing high costs for chemicals, energy and transportation combined with start-up expenses related to installing market pulp capability at our Americana, Brazil facility depressed earnings."
Mr. Ferraro went on to say, "Although high energy related costs and startup expenses at the Americana facility will continue to impact us in fiscal year 2006, product price increases we have implemented and the fact that we have essentially completed our capital expenditures related to converting Americana give us optimism that we will begin to restore margins and reduce our debt during the balance of the fiscal year."