Buckeye Technologies Inc. announced that it earned $15.9 million after tax in the quarter ended June 30, 2007. During the same quarter of the prior year the company earned $1.2 million after tax, which included expenses primarily associated with equipment sales at the closed operations in Lumberton, NC and Glueckstadt, Germany.
Net sales for the April-June quarter were $200 million, 3.5% above the $193 million achieved in the same quarter of the prior year. Net sales for fiscal year 2007 were $769 million, 5.6% above the $728 million achieved in 2006.
During the 2007 fiscal year, the company earned $30.1 million after tax, which compares to fiscal year 2006 earnings of $2.0 million after tax.
Chairman and CEO John Crowe said, “We are pleased with the improved results, both for the quarter and fiscal year. We credit the improved earnings to strong demand across all of our businesses and to the combination of higher prices, better mix and cost reductions.” He added that reduced costs and higher volumes at its Americana plant also contributed to improved earnings, both for the quarter and total year.
Buckeye’s Nonwoven Materials Segment sales and earnings were strong for the total year, according to Mr. Crowe, but even though sales were higher, operating income for the quarter was down compared to the January–March quarter due to higher corporate SRA allocations and special maintenance items. “We continue to generate strong cash flow and we lowered our debt during the year by $76 million (from $521 million to $445 million), which includes the cancellation of the $5.0 million Stac-Pac note.”