01.01.08
Location: MEMPHIS, TN
Sales: $263 million
Description: Key Personnel
Marko Rajamaa, senior vice president; Chip Aiken, senior vice president, manufacturing; Mike Brown, nonwovens sales manager—Americas and Far East; Norbert Busch, nonwovens sales manager—Europe and the Middle East
Plants
British Columbia, North Carolina, Steinfurt, Germany
Processes
airlaid
Sales were up slightly for airlaid producer Buckeye Technologies. The Memphis, TN-based company reported that sales increased from $258 million to $263 million for the year ended June 30. Corporate sales, including both airlaid and specialty fibers, increased 7.3% to $825 million; however operating income decreased $7.1 million on lower nonwovens sales as well as lower volumes caused by energy outages in the company’s Perry, FL cellulose plant.
Chairman and Chief Executive Officer John Crowe said, “Fiscal year 2008 was an outstanding year for Buckeye. Building on the momentum from 2007, we achieved a variety of significant performance milestones, including our highest ever sales revenue, debt below $400 million and EPS up 52% over the prior year. Due to the unprecedented cost escalation we have experienced over the past six months, we have implemented additional price increases and surcharges, which went into effect July 1. While oil and natural gas prices have moderated from recent peaks, we are still facing rising cost trends for energy, raw materials, chemicals and transportation in the July-September quarter compared to the April-June quarter.”
Currently, Buckeye’s airlaid business—with plants in Delta, British Columbia, Canada, Gaston, NC and Steinfurt, Germany—represents about one-third of Buckeye’s total corporate sales and mainly targets the feminine hygiene, wipes and floor mops, tabletop, napkins, place mats, incontinence items and food pad markets.
By region, 43% of Buckeye’s sales are in North America, 38% in Europe, 9% in Asia, 4% in South America and 6% throughout the rest of the world.
In January 2008, Buckeye announced it would reduce shifts and the number of employees at its Delta facility near Vancouver, Canada. According to the company, this facility was negatively impacted by the strength of the Canadian dollar as well as high transportation costs, which have made it difficult to meet the pricing requirements of a key customer.
Buckeye operates two lines in Delta, capable of making about 30,000 tons of material. The same amount can be made in Steinfurt while its Gaston line can make up to 60,000 tons of airlaid nonwovens. Meanwhile, Buckeye’s facility in King, NC contains a converting operation producing airlaid nonwovens and wetlaid paper into wipes.
On the corporate front, Buckeye continues to strive to reduce its environmental footprint both by reducing its energy costs and lessening its all-around global footprint. Already the company has completed the second year of a three-year energy savings project at its wood fibers facility in Florida, which is saving more than 200,000 barrels of #6 fuel oil annually. And, more recently, the company has formed a strategic growth team, which includes outside expertise responsible for evaluating and developing options to support our corporate objective of executive profitable growth strategies.
Among its cost-savings efforts was a plan, announced in January, to reduce 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 was the result of the company being 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 re-establishing growth and improving the financial performance of this business,” said Mr. Crowe.
Sales: $263 million
Description: Key Personnel
Marko Rajamaa, senior vice president; Chip Aiken, senior vice president, manufacturing; Mike Brown, nonwovens sales manager—Americas and Far East; Norbert Busch, nonwovens sales manager—Europe and the Middle East
Plants
British Columbia, North Carolina, Steinfurt, Germany
Processes
airlaid
Sales were up slightly for airlaid producer Buckeye Technologies. The Memphis, TN-based company reported that sales increased from $258 million to $263 million for the year ended June 30. Corporate sales, including both airlaid and specialty fibers, increased 7.3% to $825 million; however operating income decreased $7.1 million on lower nonwovens sales as well as lower volumes caused by energy outages in the company’s Perry, FL cellulose plant.
Chairman and Chief Executive Officer John Crowe said, “Fiscal year 2008 was an outstanding year for Buckeye. Building on the momentum from 2007, we achieved a variety of significant performance milestones, including our highest ever sales revenue, debt below $400 million and EPS up 52% over the prior year. Due to the unprecedented cost escalation we have experienced over the past six months, we have implemented additional price increases and surcharges, which went into effect July 1. While oil and natural gas prices have moderated from recent peaks, we are still facing rising cost trends for energy, raw materials, chemicals and transportation in the July-September quarter compared to the April-June quarter.”
Currently, Buckeye’s airlaid business—with plants in Delta, British Columbia, Canada, Gaston, NC and Steinfurt, Germany—represents about one-third of Buckeye’s total corporate sales and mainly targets the feminine hygiene, wipes and floor mops, tabletop, napkins, place mats, incontinence items and food pad markets.
By region, 43% of Buckeye’s sales are in North America, 38% in Europe, 9% in Asia, 4% in South America and 6% throughout the rest of the world.
In January 2008, Buckeye announced it would reduce shifts and the number of employees at its Delta facility near Vancouver, Canada. According to the company, this facility was negatively impacted by the strength of the Canadian dollar as well as high transportation costs, which have made it difficult to meet the pricing requirements of a key customer.
Buckeye operates two lines in Delta, capable of making about 30,000 tons of material. The same amount can be made in Steinfurt while its Gaston line can make up to 60,000 tons of airlaid nonwovens. Meanwhile, Buckeye’s facility in King, NC contains a converting operation producing airlaid nonwovens and wetlaid paper into wipes.
On the corporate front, Buckeye continues to strive to reduce its environmental footprint both by reducing its energy costs and lessening its all-around global footprint. Already the company has completed the second year of a three-year energy savings project at its wood fibers facility in Florida, which is saving more than 200,000 barrels of #6 fuel oil annually. And, more recently, the company has formed a strategic growth team, which includes outside expertise responsible for evaluating and developing options to support our corporate objective of executive profitable growth strategies.
Among its cost-savings efforts was a plan, announced in January, to reduce 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 was the result of the company being 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 re-establishing growth and improving the financial performance of this business,” said Mr. Crowe.