Cellulose-based specialty products producer Buckeye Technologies Inc announced that it incurred a net loss of $0.3 million after tax in the quarter ended September 30, 2005.
The Company's results include $1.3 million after tax in early extinguishment of debt costs and restructuring expenses associated with the previously announced plan to close the Glueckstadt, Germany cotton linter pulp plant at the end of calendar year 2005.
During the same quarter of the prior year, the Company earned $4.4 million after tax which included $0.8 million after tax in restructuring costs primarily related to the closure of its Cork, Ireland nonwovens manufacturing facility.
Net sales in the just completed quarter were $165.5 million, 1% below the $167.3 million in the same quarter of the prior year.
Buckeye Chairman David B. Ferraro commented that the just completed quarter was a very difficult one for Buckeye. Hurricane Katrina, followed by Hurricane Rita, drove already high energy and chemical costs even higher and forced transportation providers to increase their pricing. Their energy, chemical, and transportation costs were about $8 million more in the quarter ending September 30, 2005 than they were in the same period of the prior year.
Mr. Ferraro went on to say that in addition to these high costs, transportation disruptions and lower sales of fluff pulp resulted in their revenue being slightly below the previous year.
As a result of the extraordinary and unprecedented high costs, they have implemented price surcharges of up to 5 percent on most products effective October 1st. They are also working to mitigate rising costs and believe that the combination of cost savings, the price surcharges and volume growth in the seasonally stronger second quarter will enable us to be profitable in October-December 2005.
Memphis, Tennessee based Buckeye is a leading manufacturer and marketer of specialty fibers and nonwoven materials. Company currently operates facilities in the United States, Germany, Canada, and Brazil. Its products are sold worldwide to makers of consumer and industrial goods.
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