The company announced that following an analysis of various initiatives to optimize the portfolio of products and the manufacturing footprint in the Fine Paper & Packaging segment, a process will be initiated to sell its manufacturing facility located in Brattleboro, VT. Historically, this mill has manufactured products primarily for the office supply category. Based on preliminary estimates, a second quarter non-cash impairment charge related to the mill and associated office and R&D facilities could be in the range of $30 to $40 million.
“Our results in the first quarter reflected very strong performance in our Technical Products businesses, tempered by expected near term cost headwinds in Fine Paper & Packaging. As we communicated in February, impacts from these higher input and freight costs would be most significant in the first half of this year. Changes in costs are a normal part of business and our teams are implementing improvements to offset them, just as we have in the past. This includes ongoing evaluations of our product portfolio and asset footprint which has led to the announcement of the sale process for our mill in Vermont,” says John O'Donnell, CEO. “The actions we're taking to address costs will contribute to improved margins and profits as we move forward in the year. In addition, we're successfully executing our top line strategies to expand in profitable and growing markets like filtration, premium packaging and performance materials. Our financial position is strong and our teams are engaged as we continue to transform the growth trajectory of our company in ways that can deliver the maximum value to our shareholders.”