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Buckeye Downsizes Production in B.C.

January 24, 2008

Despite reduction, airlaid still characterized as healthy.

Airlaid producer Buckeye Technologies said it is reducing shifts and the number of employees at its Delta facility near Vancouver, British Columbia, Canada. The reduction in shifts, from seven to five, as well as the reduction of 20-25 employees is expected to be complete by the end of the quarter. According to the company, this facility has been hit by the strength of the Canadian dollar as well as high transportation costs, which have made it difficult to meet pricing requirements of a key customer. “Despite this reduction in business, the demand for our airlaid nonwoven products remains solid and we are committed to reestablishing growth and improving the financial performance of this business,” said CEO John B. Crowe.

In other news, Buckeye said it expects its earnings for the October-December quarter to be in the range of 34-36 cents per share. This compares to earnings for the same period last year of 10 cents per share.


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