Buckeye reported a net loss of $795,000 for the third quarter compared with profits of $4.1 million in third quarter of 2005. Net income year-to-date was $770,000, a 93% decrease compared with $11.4 million in profits during the same period of 2005.
Management said the company's results included $1.1 million in costs associated with the closure of the company's Glueckstadt, Germany cotton linter pulp mill at the end of 2005.
"The combination of startup expenses at the company's recently upgraded cotton cellulose manufacturing facility in Americana, Brazil and our inability to raise fluff pulp prices to cover extraordinarily high energy related costs resulted in our poor profit performance," said Buckeye Chairman, David Ferraro. "On the positive side, the company was able to increase prices to offset increased costs in its high-end specialty fibers and nonwovens materials and to reduce debt by about $10 million."
Mr. Ferraro expects the company's financial results to improve in the next quarter as production ramps up in the new Americana facility.