| PAPER INDUSTRY NEWS - APRIL 2000 |
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This page contains pulp and paper industry news for Apr. 2000
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NEWS APRIL 2000
Louisiana-Pacific Corporation Reports Strong First Quarter Earnings
Company more than doubles net earnings compared to same quarter last year; Sales up almost 30 percent from the same quarter a year ago
Portland, OR, April 28, 2000 Louisiana-Pacific Corp. (NYSE: LPX), a leading building products company, today announced first quarter 2000 earnings of $58 million, or $0.55 per diluted share. This represents more than a two-fold net earnings increase compared to first quarter 1999 earnings of $27 million, or $0.26 per diluted share.
For complete news Go to http://www.lpcorp.com/
Domtar 1Q 2000 Net Earning Up 380%
Montréal, April 27, 2000 — Domtar Inc. today reported net earnings of $72 million for the first quarter of 2000, or $0.38 per common share, compared with first-quarter 1999 net earnings of $15 million, or $0.08 per common share. Operating profit reached $138 million, compared with $55 million in the corresponding period of 1999. Net sales increased by 26% for the first quarter of 2000, reaching $873 million, compared with $695 million in the first quarter of 1999.
For complete news Go to http://www.domtar.com/
Tembac Reports Record Earnings for its 2Q
Montreal, April 27, 2000: Tembec reports financial results for its second quarter ended March 25, 2000.
Consolidated gross sales for the three months ended March 25, 2000 reached $653.5 million, a 60% increase from $409.1 million in the comparable period last year. Operating earnings totalled $96.8 million, approximately double the $49.4 million generated a year ago, and significantly better than the $60.4 million in the prior quarter. The Company generated record net income applicable to common shareholders of $50.8 million ($0.63 per share) compared to a net loss of $21.0 million ($0.30 per share) in the corresponding quarter ended March 27, 1999 and net income of $27.4 million ($0.35 per share) in the previous quarter.
For complete news Go to http://www.tembec.ca/
Smurfit-Stone Reports 1st Quarter Profit Of $.18 Vs. loss of $.43 Per Share Last Year
CHICAGO, April 25, 2000 — Smurfit-Stone Container Corporation (Nasdaq: SSCC) reported income from continuing operations of $40 million or $.18 per diluted share in the first quarter of 2000. This includes the impact of $.02 per share in restructuring charges resulting from plant closures. The first quarter profit compares to a net loss of $92 million or $.43 per diluted share from continuing operations in the first quarter of 1999. Sales for the quarter were $1.9 billion, compared to $1.7 billion in the first quarter of 1999.
For complete news Go to http://www.jefferson-smurfit.com/
International Paper Makes Offer for Champion: Announces $3 Billion Asset Sale
PURCHASE, N.Y., April 25 /PRNewswire/ -- International Paper (NYSE: IP) today announced that it has offered to purchase all outstanding shares of Champion International (NYSE: CHA) in a cash and stock transaction worth an estimated $6.2 billion.
In a letter to Champion Chairman and CEO Richard Olson, IP Chairman and CEO John Dillon said the company's offer is clearly superior to the previously announced all stock deal between Champion and UPM-Kymmene. International Paper is offering $64 per share for Champion shares, which Monday closed at just under $40. The total purchase price would be paid with $43 in cash, and $21 in IP stock. The implied value of UPM-Kymmene's all stock offer would be $52.74 per Champion share, based on Monday's closing price on the NYSE for UPM-Kymmene's ADRs. In addition, IP would assume approximately $2.3 billion of Champion's net debt.
For complete news Go to http://www.corporate-ir.net/
Kimberly-Clark's Record First Quarter Earnings From Operations Were Driven By Sales and Operating Profit Gains in All Businesses
As Previously Reported, Earnings From Operations Were 80 Cents Per Share In 2000, an Increase of 11 Percent Compared With 1999
DALLAS, April 24 /PRNewswire/ -- In conjunction with the company's annual meeting on April 13, Kimberly-Clark Corporation (NYSE: KMB) reported that sales in the first quarter of 2000 were $3.4 billion and earnings from operations of 80 cents per share set an all-time quarterly record. Today the company provided additional details about its first quarter results.
For complete news Go to http://www.prnewswire.com/
Westvaco to Acquire IMPAC Group, Inc.
Acquisition adds to growth momentum in global high-value packaging markets
NEW YORK, NY, April 24, 2000 -- Westvaco Corporation (NYSE: W) today announced a definitive agreement to acquire IMPAC Group, Inc., a leading global supplier of high-value specialty packaging and printing solutions for a wide variety of consumer product markets including entertainment, cosmetics and health and beauty aids.
"Acquiring IMPAC is another important step in support of our strategy for global expansion in high-value consumer packaging markets," said John A. Luke, Jr., Chairman and CEO. "This acquisition will immediately expand our market reach since IMPAC has very little overlap with our existing customer base and geographic presence. Furthermore, IMPAC's leadership team has a proven track record for identifying and exploiting market opportunities. With IMPAC on board, we now have a far stronger platform to provide packaging solutions to global consumer product companies, and we can now expand our capability beyond paper-based products."
For complete news Go to http://www.westvaco.com/
Alliance Forest Products Inc. back to Profitability with 2000 1Q Results
Montréal, April 20, 2000 - Alliance Forest Products Inc. returned to profitability in the first quarter of 2000, after facing the lowest newsprint prices in years during fiscal 1999. "Market conditions for newsprint and pulp are improving and we anticipate better results if the trend continues," said Pierre Monahan, President and Chief Executive Officer.
Alliance Forest Products Inc. recorded net sales of CAN$270.9 million for the first quarter ended March 31, 2000, compared with CAN$259.0 million for the same period of 1999. Operating income for the period was CAN$15.2 million, compared with CAN$13.4 million in 1999. Net earnings reached CAN$7.0 million ($0.20 per common share) for the quarter, compared with CAN$2.7 million ($0.07 per common share) for the corresponding quarter of 1999.
For complete news Go to http://www.alliance-forest.com/
Paper Strike Ends in Finland
HELSINKI, Finland (AP) -- Union leaders accepted a new labor agreement Wednesday, ending a weeklong strike by 30,000 workers that shut down most of Finland's pulp and paper industry.
Employers on Tuesday had already approved the mediation proposal by government-appointed National Conciliator Juhani Salonius for a three-year agreement that increases wages and gives workers one extra day paid holiday a year.
The new agreement applies to 270,000 employees and gives a 4 percent wage hike to paper workers who annually earn an average salary of 200,000 markkaa ($32,000), union officials said.
Workers who had been on strike since April 11, began to return to their jobs in the afternoon and pulp and paper mills were expected to reach full production within a few days. The pulp and paper industry has estimated that the strike cost it some $160 million in lost export earnings.
Stora Enso, the world's largest producer of paper and paper board, said the strike had cost it $38 million in lost profit. UPM-Kymmene, one of Europe's biggest forest products companies, said its losses amounted to some $57 million. Both companies expected to reach full production capacity within 24 hours of paper and pulp mills starting up again.
The central council of the Finnish Paper Workers Union accepted the labor agreement after union chairman Jarmo Lahteenmaki on Tuesday had recommended its approval. Consumers did not feel the strike as there were sufficient stockpiles of newsprint and other paper. However, if it had continued there were fears it would have affected the chemicals industry due to a reduction in demand for chemicals used in paper and pulp production. The transport sector also stood to suffer if cargos of raw materials and paper stopped.
Sonoco Reports Record First Quarter Earnings
HARTSVILLE, S.C., April 19 /PRNewswire/ -- Sonoco (NYSE: SON - news) today reported record earnings per diluted share of $.45 for the first quarter of 2000, compared with $.39 in 1999 (excluding one-time transactions), representing a 13.2% increase, it was announced by Peter C. Browning, president and chief executive officer. Including 1999's one-time transactions, reported earnings per diluted share for the prior year's first quarter were $.43.
For complete news Go to http://www.prnewswire.com/
Harnischfeger Receives Government Approval of Beloit Sale
MILWAUKEE, April 19 /PRNewswire/ -- Harnischfeger Industries, Inc. ("HII") (OTC Bulletin Board: HRZI) today announced that HII has been notified that the Department of Justice has concluded its investigation into the proposed transaction whereby Metso would acquire the Paper Aftermarket and Roll Cover Division of Beloit Corporation.
For complete news Go to http://www.harnischfeger.com/
Suitors Meet Bidding Deadline for Gallaher Thorold Paper Mill
April 17. 2000
The Butler Group and The Communications, Energy and Paperworker’s Union of Canada (CEP) entered separate bids to acquire the bankrupt Gallaher Thorold Paper mill (Thorold, ON) late Friday, just ahead of receiver Ernst and Young Inc.’s 5 p.m. deadline. The Butler Group, selected by Ernst and Young to acquire the facility last November, has been given a series of extensions to complete the deal for the past several months. The CEP, representing a group of 310 former employees, announced plans last year to purchase and restart the closed specialty papers mill (part of the community for some 100 years), but its bid was rejected at that time.
According to a Canadian Press newswire report, when the Butler Group failed to deliver acquisition financing by March 13, the field of bidders was reopened. The report said that the Butler Group is working with a former competitor, Platinum Capital Management Inc. of Mississauga, ON, to arrange financing. The mill was purchased by U.S. businessman Michael Gallaher in 1997, and reportedly lost some $29 million before closing its doors last May. It currently is said to be carrying about $70 million in debt.
The 102-m.t./day mill, formerly Fraser Papers Inc., Thorold Specialty Papers, declared bankruptcy and ceased operations on May 25. The group of former employees represented by the CEP included 270 unionized production and maintenance workers, four office personnel, 10 engineers, and the company's former management group. Some 20 of the former workers, laid off when the facility closed, had occupied the mill for 26 days last October in an attempt to force the receiver into finding an active buyer-operator and to stop the Toronto Dominion Bank from liquidating the facility.
Using 100% deinked pulp produced onsite, the mill was making coated-one-side specialty packaging grades, wall covering, latex saturated papers, and envelope papers prior to the closure. The previously idled deinking plant has an existing 110 m.t./day capacity, employing a series of pulpers, screens, cleaners, washers, and three sidehill screens. The pulp was bleached using a C-H sequence.
The mill has three fourdrinier paper machines, one which had been idled for some time. One of the machines in operation prior to the May 25 closure is a 142-in.-wide unit with an operating speed of 1,000 ft/min. The other is a 125-in.-wide machine that runs at 1,400 ft/min. The previously idled paper machine is 175 in. wide with a maximum speed of 1,800 ft/min. The two on-machine coaters are a 115-in.-wide Black-Clawson blade/size press and a 145-in-wide Jagenberg blade unit with high velocity and Overly dryers.
The mill’s finishing plant includes a set of supercalenders, a roll wrapping station, four rewinders, a sheeter, and a ream wrapping and cartoning line. The mill has three oil/gas-fires power boilers, and was purchasing some 216,000 kwh/day of electricity before the shutdown. It was operating primary and secondary waste treatment plants, and was consuming about 7 million gal/day of process water.
The Canadian Press article added that Mike Lambert, CEP’s Local 290 representative, said the CEP offer is “a serious bid.” The reports also pointed out that Ernst and Young did not reveal how many offers it had received by Friday, but that all bids will be reviewed this week.
Weyerhaeuser Reports Significant Increase in First Quarter Results;
Net Earnings for Quarter Reach $244 Million on Sales of $3.9 Billion
FEDERAL WAY, WA, April 18, 2000 Weyerhaeuser Company today reported net earnings of $244 million, or $1.04 per share, for the first quarter of 2000 on strong results from all lines of business. This compares with a first quarter loss of $48 million, or 24 cents per share, for the same period last year.
For complete news Go to http://www.weyerhaeuser.com/news
Abitibi-Consolidated Acquires Approximately 95% of Donohue Shares
Montréal, Québec - April 18, 2000 - Abitibi-Consolidated Inc. announced today that it has acquired approximately 95% of the Class A Subordinate Voting Shares and approximately 92% of the Class B Shares of Donohue Inc. under its offers on the basis of $12.00 in cash and 1.8462 Abitibi-Consolidated common shares per Donohue share. Altogether, Abitibi-Consolidated currently holds approximately 95% of all Donohue shares, representing approximately 93% of the voting rights attaching to all outstanding voting shares of Donohue.
For complete news Go to http://www.abicon.com/
NASHUA CORP. Completes RITTENHOUSE Acquisition
NASHUA, N.H., April 17, 2000 -- Nashua Corporation (NYSE: NSH), a leading manufacturer of specialty coated products, labels, toners and developers, announced today it has completed its previously announced acquisition of Rittenhouse Paper Company.
For complete news Go to http://www.nashua.com/
Boise Cascade Reports Sharply Improved First-Quarter Earnings
BOISE, Idaho, April 14 /PRNewswire/ -- Boise Cascade Corp. (NYSE: BCC) today reported first quarter 2000 net income of $39.6 million, or 60 cents per diluted share, compared with $18.9 million, or 26 cents per diluted share, before nonroutine items, in the first quarter of 1999. Fourth quarter 1999 net income was $45.9 million, or 70 cents per diluted share, before nonroutine items.
For complete news Go to http://www.prnewswire.com/
Abitibi-Consolidated announces plans to take-up Donohue shares on April 18, 2000
MONTREAL, Quebec, April 14 /CNW/ - Abitibi-Consolidated Inc. announced today that, having met all regulatory conditions to its Offers, it currently intends to take-up and pay for all Donohue shares tendered as at 9:00 am on April 18, 2000, provided all remaining conditions are met. In accordance with the terms of the Offers, which included a collar structure, Donohue shareholders will receive 1.8462 Abitibi-Consolidated common share plus $12.00 cash for each Donohue share tendered.
For complete news Go to http://www.newswire.ca/
Kimberly-Clark Announces All-Time Record Earnings from Operations of 80 Cents Per Share in First Quarter of 2000, Driven by Top-Line Growth of 8 Percent And Continued Cost Savings
Company Repurchased 7.5 Million Shares of its Common Stock During Quarter
DALLAS, April 13 /PRNewswire/ -- At Kimberly-Clark Corporation's (NYSE: KMB - news) annual meeting here today, Chairman and Chief Executive Officer Wayne R. Sanders told stockholders that the company's strong momentum continued in the first quarter of 2000.
For complete news Go to http://www.prnewswire.com/
Westvaco Completes Sale of Its Liquid Packaging Business
NEW YORK, NY, April 12, 2000 -- Westvaco Corporation (NYSE: W) today announced that it has completed the sale of its liquid packaging business to Blue Ridge Paper Products Inc. The purchase price was not disclosed. The sale, which was announced in January, includes Westvaco's liquid packaging plant located in Richmond, VA. The plant employs about 100 people, all of whom have been offered employment by Blue Ridge.
For complete news Go to http://www.westvaco.com/
Profitability Programs and Merger Benefits Help Boost International Paper Earnings
PURCHASE, N.Y., April 11 /PRNewswire/ -- International Paper (NYSE: IP) today reported improved first-quarter 2000 earnings of $249 million ($.60 per share) before special and extraordinary items. Primarily due to the company's profit improvement programs and benefits from last year's merger with Union Camp, the results represent an increase of nine percent or $22 million ($.05 per share) compared to fourth-quarter 1999 net earnings of $227 million ($.55 per share) before special and extraordinary items. First quarter 2000 earnings represent nearly eight times the earnings per share ($32 million, or $.08 per share) reported in the comparable quarter a year earlier.
For complete news Go to http://www.corporate-ir.net
Strike has Stopped Production At Stora Enso's Finnish Mills
STOCKHOLM, Sweden--(BUSINESS WIRE)--April 11, 2000--All Stora Enso's Finnish production plants have been temporarily shut down by a strike throughout the Finnish paper industry. In addition to the pulp, paper and board mills, the strike has also shut the packaging mills, chemical plants of the mills and maintenance companies. The strike will cost Stora Enso about 5 million euro per day in lost operating profit. About 40% of Stora Enso's 13.3 million tonnes of annual paper and board production capacity is in Finland. The output lost will be about 15,000 tonnes per day.
For complete news Go to http://www.storaenso.com/
Champion International Corp. Reports Strong First Quarter Earnings
Stamford, CT, April 10, 2000 – Champion International Corporation (NYSE:CHA) today reported first quarter net income of $98 million or $1.01 per diluted share. The company had net income of $3 million or $.03 per share, excluding a special item, in the first quarter of 1999 and net income of $79 million or $.82 per diluted share, before an extraordinary item, in the fourth quarter of 1999. First quarter 1999 results excluded earnings of $.40 per share reflecting the impact of the devaluation of the Brazilian currency on U.S.-denominated investments held by the company’s Brazilian operation.
For complete news Go to http://www.championpaper.com/
Consolidated Papers, Inc. Announces Improved Earnings During First Quarter 2000;
Results Mark the Third Consecutive Quarter of Increased Earnings
April 10, 2000, WISCONSIN RAPIDS, Wis. - Consolidated Papers, Inc. (NYSE: CDP) today reported first quarter 2000 earnings of $25,271,000, or 28 cents per share. This compares with first quarter 1999 earnings of $13,970,000, or 15 cents per share, and fourth quarter 1999 earnings of $22,584,000, or 25 cents per share.
For complete news Go to http://www.consolidatedpapers.com
Sulzer Takes Over Ahlstrom Pump Activities
Sulzer Industries On Growth Course: Important Acquisition In Pump Business
WINTERTHUR, Switzerland, April 7 /PRNewswire/ -- Sulzer Medica AG (NYSE: SM - news) has acquired the pump activities of the A. Ahlstrom Corporation, Helsinki. Final closing is expected in mid May, subject to approval of the regulatory and antitrust authorities. This strategic acquisition gives Sulzer a leading position in pumps for the pulp and paper industry. Sulzer Pumps sales will rise thereby from EUR 445 million (CHF 710 million) to EUR 580 million (CHF 930 million). Personnel will increase by 1000 to about 5000 employees in total. The purchase price is approximately EUR 145 million (CHF 230 million).
For complete news Go to http://www.sulzer.com/
APRIL Reports 119% Increase in 4Q 1999 EBITDA
Reports 1999 Financial Results, Debt Restructuring, Project and Market Updates
SINGAPORE, April 6 /PRNewswire/ -- The APRIL Group (Asia Pacific Resources International Holdings Ltd.) (NYSE: ARH - news) announced financial results for the quarter and year ended 31 December 1999 on 4 April 2000.
For complete news Go to http://biz.yahoo.com/
Sonoco to Close Woodyard and Crosstie Operations
HARTSVILLE, S.C., April 6 /PRNewswire/ -- Sonoco (NYSE: SON) will permanently close its woodyard and related crosstie mill in Hartsville. This was announced today by Harris E. DeLoach, Jr., senior executive vice president and chief operating officer.
Employees of these operations, 22 hourly and three salaried, will be offered jobs in other departments. They will also be given the option of selecting severance pay or regular retirement if 55 or older. The Forest Products division office and forest resource staff will remain with responsibility for woodchip procurement and production.
For complete news Go to http://www.prnewswire.com/
Employees Buy Canton Paper Mill
CANTON, N.C. (AP) -- Tim Smather had the look of a contented man, even though he took a $7,000 pay cut in 1999 at his job of 24 years.
Nearly a year ago, he and more than 1,000 other workers at the old Champion International paper mill jumped off the career path followed by their parents and grandparents, who punched a clock every day at the Haywood County plant.
They bought the place.
The historic purchase of the Canton mill and several other plants owned by Champion came with a hefty price: a 15 percent cut in pay and benefits for the length of their seven-year union contract. In return for financial backing by a New York investment group, the employees got stock in the company and a profit-sharing plan.
Now named Blue Ridge Paper Products, Inc., the new company operates mills in Canton and Waynesville and five finishing plants around the country.
For complete news Go to http://biz.yahoo.com/apf
Cascades to Construct a New Converting Facility in Ontario
Kingsey Falls,(Quebec), April 4, 2000 Cascades Enviropac Inc., a subsidiary of Cascades Inc., announces the construction of a new plant in Brampton, Ontario to manufacture honeycomb packaging products. The company will invest more than $1 million to start up the plant's operations, creating 15 direct short-term jobs and leading to the creation of up to 75 jobs within 3 years.
For complete news Go to http://www.cascades.com/
Valmet to Supply a Fiberboard Plant to Brazil
04.04.2000 Valmet Corporation will supply an MDF (medium density fiberboard) plant to Placas do Paraná's greenfield site in Brazil. The value of the order is approximately EUR 40 million. The plant is scheduled to start up in late 2001.
For complete news Go to http://www.valmet.com/
Fletcher Challenge Sells Paper Division
AUCKLAND, and VANCOUVER, April 3 /CWN/ - Fletcher Challenge announced today that it has reached an agreement to sell its Paper Division to Norske Skog (Norske), a leading global publications paper producer based in Norway, for an estimated NZ$5.0 billion (US$ 2.5 billion).
Under the terms of the transaction, Norske will pay cash for all the shares of Fletcher Challenge Paper (FCP) at a price of NZ$2.50 per share, and also make a payment to Fletcher Challenge which will be used to repay all outstanding Paper indebtedness at closing, and cover the Paper Division's share of the total costs of separation from the Fletcher Challenge Group. The transaction, which requires Fletcher Challenge shareholder approval and the approval of Norske's Corporate Assembly, is expected to close in July.
For complete news Go to http://www.newswire.ca/
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