Fourth quarter results have been released by roll goods producer Buckeye Technologies, Memphis, TN. The company earned $1.2 million after taxes in the quarter ended June 30, 2006. Net sales for the April-June quarter were $193 million, 5% above the $184 million achieved in the same quarter of the prior year. Net sales for fiscal year 2006 were $728 million, 2% above the $713 million achieved in the prior year. During last year’s fourth quarter the company earned $8.8 million.
During fiscal year 2006, Buckeye earned $2 million after tax including restructuring and impairment expenses of $3.6 million. This compares to fiscal year 2005 earnings of $20.2 million including restructuring, impairment, financing costs, special asset sales and a favorable tax ruling.
According to Buckeye chairman John Crowe, fiscal year 2006 was highlighted by the completion of the company’s restructuring programs that began three years ago. “The closure of the Glueckstadt, Germany cotton cellulose pulp plant and the start of market pulp production at our Americana, Brazil cotton cellulose pulp plant completed the planned consolidation necessary to improve our cost structure.”
Mr. Crowe added that while the Americana ramp-up has been slower than expected, the facility is building revenue and is expected to improve financial performance in fiscal 2007. “With the restructuring program completed, we are positioned for growth in fiscal year 2007," he said.