| PAPER INDUSTRY NEWS - APRIL 2001 |
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This page contains pulp and paper industry news for April 2001
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NEWS APRIL 2001
G-P and Domtar Sign LOI for Domtar to acquire G-P Paper Manufacturing Assets in AR, ME & WI.
ATLANTA and MONTREAL April 30, 2001 - Georgia-Pacific Corp. (NYSE: GP) and Domtar Inc. (TSE and NYSE: DTC) today announced that the companies have signed a letter of intent for Domtar to acquire a portion of Georgia-Pacific's pulp and paper business. The proposed purchase price and other terms were not disclosed pending final agreement between the parties.
The assets involved are Georgia-Pacific's stand-alone uncoated fine paper mills at Ashdown, Ark.; Nekoosa and Port Edwards, Wis.; and Woodland, Maine as well as the associated pulp facilities.
The sale, which is contingent on the completion of due diligence, execution of a definitive agreement and customary approvals, is expected to be completed in the second quarter 2001. Georgia-Pacific will use proceeds from the sale to repay debt.
For complete news Go to http://www.domtar.com/
Stora Enso's Financial Results Good Despite Weaker Market
Interim Review January – March 2001
Apr. 26, 2001: Stora Enso achieved good first quarter results in a weakening market. Sales were EUR 3,637.0 million, similar to the last quarter. The operating profit, excluding non-recurring items, was up 19% on the previous quarter at EUR 523 million. The strong operating profit was due to improved prices in magazine paper, newsprint and packaging boards. Capacity utilisation control through production curtailments for market reasons totalled 205,000 tonnes.
"All financial targets were well met," says Jukka Härmälä, CEO of Stora Enso. "We believe the good financial results reflect our high operating efficiency."
Earnings per share (EPS) up 11% on the previous quarter.
For complete news Go to http://www.storaenso.com
METSÄ Tissue's Results Turns to Profits
PROFIT BEFORE EXTRAORDINARY ITEMS FOR JANUARY - MARCH WAS EUR 2.1 MILLION (LOSS OF EUR 5.4 MILLION FOR THIS PERIOD LAST YEAR)
April 25, 2001:
For complete news Go to http://www.bit.se/bitonline/
International Paper Closes Bleached Board Mill in Moss Point, Mississippi
MOSS POINT, Miss., April 25 /PRNewswire Interactive News Release/ -- International Paper's Moss Point Bleached Board Mill will indefinitely close by the end of the second quarter of 2001 due to high costs and the need to align production with its customer demand.
"We sincerely regret the effect this decision will have on the employees, their families and the surrounding communities," said Ed Locke, mill manager-Moss Point Mill. "Due to economies of scale and age, the mill is a high cost facility. Considerable effort has been exerted in the recent past to reduce costs, but we are not able to lower them significantly enough to be competitive in today's market.
" The mill, which employs 375 people, was constructed in 1912 and acquired by International Paper in 1928. It has one paper machine that can produce nearly 200,000 tons of Bleached Board and Bristols paper each year for products such as greeting cards, paperback book covers, cartons for frozen foods, pharmaceuticals and cosmetics.
For complete news Go to http://www.internationalpaper.com/
Pacifica Reports Sharply Higher Earnings, Sales and EBITDA for 1Q 2001
VANCOUVER, April 23 /CNW/ - Pacifica Papers Inc. (TSE: PPP) reported sharp improvements in sales, net earnings and earnings before interest, taxes, depreciation, amortization and other non-operating income and expenses (EBITDA) for the first quarter ended March 31, 2001, marking the Company's 12th consecutive profitable quarter since its inception in mid-1998.
Net earnings totalled $14.3 million or $0.54 per common share for the first quarter of 2001, compared to net earnings of $1.2 million or $0.05 per common share for the first quarter of 2000. Net earnings for the latest period included a gain of $7.8 million or $0.29 per share arising from the sale of 49.9% of Pacifica's hydroelectric facilities at Powell River. Sales reached $228.1 million for the first quarter of 2001, up 12.5% compared to sales of $202.7 million for the comparable period in 2000. EBITDA for the latest quarter totalled $45.3 million, up 34.4% from EBITDA of $33.7 million for the first quarter of 2000. For the seasonally strong fourth quarter ended December 31, 2000, Pacifica reported net earnings of $9.6 million or $0.36 per common share and EBITDA of $51.1 million on sales of $233.5 million.
For complete news Go to http://www.newswire.ca/
Kimberly-Clark Reports Sales Climbed 6.5 Percent to a Record $3.6 Billion in 1Q;
EPS From Operations Increased to 84 Cents, a Gain of 5.0 Percent Compared With 2000
Sales and Earnings Growth Achieved Despite Currency Effects and Significantly Higher Energy Costs
DALLAS, April 23 /PRNewswire/ -- Kimberly-Clark Corporation (NYSE: KMB) today reported that solid volume growth and higher selling prices boosted sales in the first quarter of 2001 to a new quarterly high of $3.6 billion, an increase of 6.5 percent compared with 2000. Excluding currency effects, sales rose more than 9 percent.
The sales gain enabled the company to increase earnings per share from operations, overcoming both currency effects that reduced earnings by approximately 4 cents per share and higher energy costs equivalent to more than 3 cents per share. First quarter earnings from operations of 84 cents per share were up 5.0 percent from 80 cents per share in 2000 and set a new first quarter record.
Including unusual items, diluted net income per share for the first quarter was 81 cents in 2001 compared with 86 cents in 2000, a decrease of 5.8 percent. The unusual items consisted primarily of charges to streamline the company's feminine and adult care operations in North America in 2001 and proceeds from settlement of a patent dispute in 2000.
For complete news Go to http://www.prnewswire.com
Start Up of a New Plant in Mexico by Norampac Inc.
MONTREAL, April 23 /CNW/ - Norampac Inc. ("Norampac") is pleased to announce the start up of a new corrugated converting plant in Monterrey Mexico, under the name of Norampac Monterrey Division S.A. de C.V.
The new 33,000 square foot sheet plant is equipped with, among others, a two-color rotary press and a laminator. The addition of this new plant in the Norampac Group will create ten new jobs and will allow the company to participate in the growth of the fast-expanding Mexican market. The management of the plant has been entrusted to Mr. Gord Jonah who had been Logistics Manager at Norampac Inc., Calgary Division since 1997.
With eight containerboard mills and twenty-three corrugated converting plants in France, the United States, Canada and Mexico, Norampac is intensifying its presence across North America, with this new location.
For complete news Go to http://www.newswire.ca/
Bowater Says 1Q Earnings Doubled
GREENVILLE, S.C. (AP) -- Bowater Inc. , the nation's second-largest newsprint maker, says earnings doubled in the first quarter, boosted by lower pulp prices and operating costs.
The company said Monday it earned $37.7 million, or 72 cents a share, compared with $17.2 million, or 32 cents a share, for the first quarter of 2000. Sales increased about 7.5 percent to $604.9 million from $562.9 million last year.
Bowater curtailed production by about 36,000 metric tons of newsprint and 45,000 metric tons of pulp in the first quarter of 2001, the company said.
For complete news Go to http://www.bowater.com/
Domtar Announces Net Earnings of $34 Million
MONTREAL, April 19 - Domtar Inc. today announced net earnings of $34 million or $0.19 per common share for the first quarter of 2001, compared to $72 million or $0.38 per common share for the corresponding period of 2000. Operating profit stood at $78 million versus $138 million in the first quarter of 2000. Net sales increased by 10 % to $954 million compared to $867 million for the first quarter of 2000.
For complete news Go to http://www.domtar.com/
Georgia-Pacific Group Reports First Quarter Results
ATLANTA, Georgia. April 19, 2001 -- Georgia-Pacific Group (NYSE:GP) today reported a net loss of $137 million (61 cents diluted loss per share) for the first quarter 2001, which includes a one-time, pre-tax charge of $82 million ($52 million after tax, or 23 cents diluted loss per share) related to the closure of the Bellingham, Wash., pulp and lignin operation. A year ago, first quarter net income was $194 million ($1.11 diluted earnings per share).
In addition, Georgia-Pacific Group recorded an extraordinary loss on early retirement of debt, net of taxes, of $12 million (5 cents diluted loss per share) and income, net of taxes, of $11 million (4 cents diluted earnings per share) for the cumulative effect of a change in accounting for derivative instruments and hedging activity.
The net loss before the one-time charge, extraordinary loss and accounting change was $84 million (37 cents diluted loss per share).
For complete news go to http://www.gp.com/
International Paper Reports First-Quarter 2001 Earnings
PURCHASE, N.Y., April 18 /PRNewswire/ -- International Paper (NYSE: IP) today reported first-quarter 2001 earnings of $24 million ($.05 per share) before special and extraordinary items. Earnings for the same period a year earlier were $249 million ($.60 per share) before special and extraordinary items. First-quarter 2001 net sales were $6.9 billion, compared to $6.4 billion in the first-quarter 2000. Fourth-quarter 2000 earnings before special and extraordinary items were $145 million ($.28 per share) and sales were $7.2 billion. First-quarter 2000 figures do not include Champion International Corporation, which International Paper acquired in June of last year.
"While we can't change the economy, we are changing the company. We are taking actions that we are convinced are benefiting shareholders in the short term and are positioning the company to win in the long term," said John Dillon, chairman and chief executive officer. "We are matching our production to our orders, which has led to reductions in inventories. We are focusing on our three core businesses -- paper, packaging and forest products -- and are reinforcing relationships with our customers. And our continuing internal improvement effort will give International Paper a superior competitive position when the business outlook improves."
For complete news Go to http://investor.internationalpaper.com/
Fibermark Completes Purchase of DSI
and $230 M Debt Placement
APRIL 18, 2001 BRATTLEBORO, VERMONT-April 18, 2001- FiberMark, Inc. (NYSE:FMK) today announced completion of its purchase of Rexam Decorative Specialties International (DSI), the leading worldwide producer of latex-saturated decorative materials for specialty packaging, book production and publishing, printing and office products markets.
With a purchase price of approximately $140 million in cash, the acquisition was effective April 18, 2001. Financed with $230 million of 10 3/4% senior notes due 2011 through institutional private placement, offering proceeds were also used to refinance existing debt.
DSI, with annual revenues of approximately $137.5 million, is a wholly-owned subsidiary of Rexam PLC, a global consumer packaging group. With five production facilities in the United States and one in the United Kingdom, DSI is headquartered in South Hadley, Massachusetts. DSI also produces coated cloth, bonded leather and other specialty base materials, complemented by considerable finishing capabilities in coating, saturating and embossing. Additionally, DSI makes a line of latex-saturated wallcovering base.
For complete news Go to http://www.fibermark.com
Uniforet Inc. Files for Court Protection
ST-LEONARD Quebec, April 17 /PRNewswire/ - Uniforet Inc. and its subsidiaries, Uniforet Scierie-Pate Inc. and Foresterie Port-Cartier Inc, (referred as the "Company'') announced today that they have taken the decision to file for court protection. On April 17, 2001 the Superior Court of Montreal granted an order under the Companies' Creditors Arrangement Act (``CCAA'') in respect of the Company. As approved by the Court, the Company will present, in the best delays possible, a plan of arrangement setting out the terms of the restructuring of its debts and other obligations to its creditors.
Meanwhile, the Company intends to continue its operations and satisfy the customers' orders. Suppliers of goods and services necessary for the operation of the Company will be paid in the normal course of business.
For complete news Go to http://www.newswire.ca/
Weyerhaeuser Reports First Quarter Earnings of 61 Cents Per Share Before A Special Charge on Net Sales of $3.6 Billion
FEDERAL WAY, Wash.April, 17, 2001—Weyerhaeuser Company (NYSE: WY) today reported first quarter net earnings of $107 million, or 49 cents per share, that include a nonrecurring after-tax charge of $26 million associated with the decision to outsource certain information technology services as part of the company’s program to streamline support services. Excluding the charge, first quarter 2001 earnings were $133 million, or 61 cents per common share. This compares with $244 million, or $1.04 per share, for the first quarter of 2000.
Net sales for the first quarter 2001 were $3.6 billion compared with $3.9 billion for the same period last year.
"Our results reflect the challenging market conditions we faced during the first quarter," said Steven R. Rogel, chairman, president and chief executive officer. "At the same time, we benefited from the hard work of our people who are improving our operating efficiencies and successfully integrating our recent acquisitions. As we look to the future, all of us are focused on taking the steps necessary to ensure that Weyerhaeuser generates solid shareholder returns regardless of market conditions."
For complete news Go to http://www.weyerhaeuser.com/
PH Glatfelter Says Q1 Earns Rise 40%
YORK, Pa., April 17 (Reuters) - P.H. Glatfelter (NYSE:GLT - news) said Tuesday its first-quarter earnings rose more than 40 percent, but the specialty paper and engineered products maker said a scheduled mill maintenance shutdown would cut into its second- quarter results.
For complete news Go to http://www.glatfelter.com
Willamette Reports First Quarter Earnings, Continues to Outperform Sector
PORTLAND, Ore., April 12 /PRNewswire/ -- Willamette Industries (NYSE: WLL) today reported financial results for the first quarter ended March 31, 2001.
Net earnings for the 2001 first quarter were $66.6 million, or $0.61 per diluted share, versus net earnings of $85.3 million, or $0.76 per diluted share, in the first quarter of 2000. Sales for the 2001 first quarter were $1.13 billion, as compared to $1.17 billion for the same period last year. First quarter net earnings include a $0.03 per share gain from the sale of non-strategic timberland offset by a $0.04 per share charge associated with the defense of the unsolicited hostile takeover initiated by Weyerhaeuser during the fourth quarter of 2000.
Duane McDougall, President and Chief Executive Officer, said, "Willamette produced solid earnings for the quarter despite weakened conditions in the general economy and higher energy costs across all lines of business. Our strong performance relative to our peers, many of which already pre-announced first quarter losses, is the result of our low cost, integrated business strategy, balanced business mix, and the exceptional dedication and efforts of our employees.
For complete news Go to http://www.prnewswire.com/
Caraustar Industries, Inc. Announces It Expects First Quarter Loss
ATLANTA, April 12 /PRNewswire/ -- Caraustar Industries, Inc. (Nasdaq: CSAR) today announced that it expects first quarter results to be a loss of approximately $0.12 to $0.14 per share excluding restructuring and one-time charges. In the first quarter of 2000, Caraustar reported fully diluted earnings of $0.25 per share excluding restructuring and one-time charges.
Thomas V. Brown, president and chief executive officer of Caraustar, commented, "The first two months of 2001 were slow to recover from the 25 percent decline in demand our industry suffered over the last six to eight weeks of 2000. March showed signs of recovery with backlogs growing early in the month, but weakening in the second half. As a consequence, Caraustar's overall demand in the first quarter of 2001 was down approximately 2 percent from the fourth quarter of 2000. The general trend, as evidenced by the March results, is for a gradual but slow recovery in volume as we move into the second quarter and beyond.
For complete news Go to http://www.corporate-ir.net
Voith Paper to Supply Stock Preparation Equipment for Doubling Production at Felix Schoeller’s Weissenborn Mill
April 04, 2001 A large-scale rebuild by Voith Paper is planned for PM 4 at the Felix Schoeller jr. mill, in Weissenborn, Germany. The rebuild will increase the yearly production from 60,000 to 120,000 tons of photo-base paper. Included in the project is the expansion of the stock preparation and approach flow system.
For the stock preparation expansion, Voith Paper, as the system supplier, is responsible for ensuring that the paper furnish will meet the mill requirements in terms of quantity and its highly specialized quality.
Voith Paper Fiber Systems, Ravensburg, Germany, will supply a complete B+G pulp feeding system for four different pulp grades, including a unit dewiring and destacking system, bale turner and single bale buffer. In addition, Voith Paper will provide a continuously operating pulper, as well as high-density cleaning and TwinFlo double- disc refining.
For complete news Go to http://www.voithsulzer.com
Boise Cascade's Jackson, Alabama, Pulp and Paper Mill Sets Industry Safety Record
BOISE, Idaho, April 9 /PRNewswire/ -- Boise Cascade Corp. (NYSE: BCC) announced today that employees at the company's pulp and paper mill in Jackson, Alabama, have established a new industry safety record of 7,430,000 safe work hours. In establishing this record, employees worked 2,014 days, or 5 1/2 years, without incurring a lost-time accident. The previous industry record of 7,429,362 safe work hours was set in 1979. The Jackson mill is a state-of-the-art facility that manufactures uncoated printing and business papers and has 602 employees.
Dick Merson, vice president, Alabama Operations, said, "It is nice to set records, but it is more important that our employees work safely and care for one another. Safety has been and will always be our first consideration." Merson added, "A record this significant comes from a total team effort and a commitment by all employees to working safely."
For complete news Go to http://www.prnewswire.com/
Stora Enso Packaging Increasing Investment in Russia
Apr. 09, 2001, Stora Enso’s subsidiary ZAO Stora Enso Packaging will expand the production capacity of its Balabanovo plant in Russia. The Balabanovo plant manufactures corrugated board and boxes. The total investment in expanding the premises and adding new converting lines at Balabanovo will be EUR 14 million. This additional capacity will enable ZAO Stora Enso Packaging to respond to the rapidly increasing demand in Russia and improve customer service. The annual converting capacity of the Balabanovo plant will increase from 70 million m2 to 105 million m2, and the number of employees will increase by 35. The new capacity is expected to be in operation in March 2002.
For further information Go to http://www.storaenso.com/
Norske Skog Canada Cuts Paper Production to Balance Supply with Weaker Market Demand
Vancouver, BC, April 9, 2001 : Norske Skog Canada announced today that it is planning to curtail newsprint production by 22,000 tonnes to address weaker demand in the company's export markets. The downtime will be taken over an estimated nine day period during May and June and will be equally split between the company’s Elk Falls and Crofton mills.
The company said the curtailment is primarily the result of reduced newsprint consumption by customers in Asia and South America. Orders from North American customers have held up well through the first quarter, but some softness is anticipated as the U.S. economy weakens.
Demand for directory and specialty grades of paper remains strong. Russ Horner, Norske Skog Canada’s president and CEO said the company was taking proactive curtailment to match output to demand in key markets. “Our paper inventory levels are currently at historically low levels, and we intend to maintain them in that range during this period of weaker demand,” Horner said.
He said the company’s integrated pulp operations will also be impacted by the curtailment plan which will result in further reduced market pulp production of 4000-5000 tonnes bringing total pulp curtailment for the second quarter to 29,000 tonnes.
For complete news Go to http://www.norskeskog.no/
Metso Paper to Strengthen its Service operations in North America
03.04.2001 Metso Paper USA, Inc. will open a new Service Center in the Stateline-Beloit, WI area. The Center is scheduled to be open in November 2001 and it will house 170 employees currently working out of the old facilities in Beloit. Total value of the investment is EUR 8.5 million.
The new Service Center will include logistics center for the central distribution of spare parts and consumables and the assembly and repair of certain components. In addition, it will have offices for engineering and service personnel supporting field services and upgrades of fiber and papermaking lines.
The Service Center will strengthen Metso Paper's capabilities in servicing former Beloit and Valmet equipment. Metso Paper acquired Beloit's paper machine service assets in May 2000. This access to a very large reference base is one key in Metso Paper's strategy for securing additional growth potential in aftermarket service and maintaining industry leadership.
For complete news Go to http://www.valmet.com
Sonoco to Close Paper Mill at Munroe Falls, Ohio
HARTSVILLE, S.C., April 2 /PRNewswire/ -- Sonoco (NYSE: SON) today announced that it will close its Munroe Falls, Ohio, paper mill, effective April 13, 2001.
The mill, with a capacity of approximately 90 tons per day, has been closed temporarily since January 2001 reflecting current softness in demand. The mill, located at 59 North Main Street, was acquired by Sonoco in 1960 and currently employs 46 people.
The Company will offer out-placement assistance and severance benefits. Sonoco's paper tube plant located at the same address in Munroe Falls is not affected by the paper mill closing and will continue operating. It is expected that employment opportunities will become available at the tube facility for some paper mill employees.
For complete news Go to http://www.prnewswire.com/
Closing of the Norampac Inc. and Crown Packaging Ltd. Transaction
Montreal, Quebec, April 2, 2001 --- Norampac Inc. (“Norampac”), through its subsidiary Norampac Paper Inc., announces the closing of the acquisition of the containerboard mill and eight paper recovery plants for a total of $53 million from Crown Packaging Ltd. and 428959 B.C. Ltd. (formerly Crown Packaging Holdings Ltd). The annual capacity of the containerboard mill, located in Burnaby, British Columbia, is 130,000 metric tons of recycled corrugating medium. The paper recovery plants are located in British Columbia, Alberta and Manitoba and will provide all the recycled paper needed by the mill and the excess volume collected over the mill's requirements will be sold in the North American and Asian markets.
With eight containerboard mills and twenty-two corrugated box plants in France, the United States and Canada, Norampac has expanded its presence across North America and will be able to supply its own corrugated box plants in Western Canada more efficiently. With this acquisition, Norampac adds an additional 240 employees to the group.
For complete news Go to http://www.cascades.com
GEO to Acquire Hercules Peroxy Chemicals
Wilmington, DE, April 2, 2001 … Hercules Incorporated (NYSE: HPC) announced today that it has signed a definitive agreement to sell its peroxy chemicals business to GEO Specialty Chemicals, Inc. The parties anticipate closing the transaction during the second quarter 2001. Financial terms are not being disclosed.
The peroxy chemicals business is part of the Hercules Resins division. The business has operations in Gibbstown, New Jersey; Franklin, Virginia; and Beringen, Belgium.
For complete news Go to http://www.herc.com
Eastman to Acquire Hercules Resins; Companies Signs Definitive Agreement
WILMINGTON, DE, APRIL 2, 2001 . . . Hercules Incorporated (NYSE: HPC) today announced that it has signed a definitive agreement to sell its hydrocarbon resins and select portions of its rosins resins businesses to Eastman Chemical Company (NYSE: emn). The net proceeds from this divestiture, scheduled to close by the end of April, will be used to reduce debt. Financial terms are not being disclosed.
"The sale of these resins businesses marks another important step in our plan to maximize shareholder value," said Thomas L. Gossage, Hercules Chairman and Chief Executive Officer. "And we also are pleased that the employees and customers of these resins businesses will go forward with Eastman, whose commitment to resins is longstanding and strategic."
For complete news Go to http://www.herc.com/
Bowater to Acquire Alliance Forest Products Inc.
GREENVILLE, S. C. & MONTREAL, Quebec April 2, 2001-- Bowater Incorporated (NYSE:BOW - news) and Alliance Forest Products Inc. (TSE:ALP, NYSE:PFA) today announced the signing of a definitive agreement by which Bowater will acquire all of the outstanding shares of Alliance. Under the terms of the agreement, Bowater will pay C$13.00 in cash plus 0.166 shares of Bowater's common stock for each Alliance common share. Using the past twenty day average trading price of Bowater common stock implies a per share value of approximately C$26 for each Alliance common share. Alliance shareholders may choose to receive common shares of Bowater or Canadian-listed shares in a Bowater Canadian subsidiary, with the same voting and dividend rights, which are exchangeable at any time into Bowater shares (TSE:BWX - news).
The aggregate value of the transaction, including assumed debt, is approximately C$1.2 billion (U.S.$770 million). The boards of directors of both companies have approved the transaction.
Arnold M. Nemirow, Bowater's Chairman, President and Chief Executive Officer, said: ``I am extremely enthusiastic about the compelling opportunities this transaction will offer to our respective customers, shareholders and employees. The Quebec mills are modern, cost-competitive facilities with a reputation for excellent quality. The addition of Alliance's supercalendered and specialty papers to Bowater's coated groundwood and value-added papers will make the combined company a premier supplier to these fast growing markets. In addition, Alliance's Alabama newsprint mill is strategically located to enable us to better serve our newsprint customers. Completion of its modernization will provide Bowater another low-cost, recycled newsprint facility. These assets combined with Alliance's forest products facilities and fiber base are an excellent strategic fit for Bowater. We are pleased to expand our investment in Canada, by acquiring a Quebec-based company with a well-deserved reputation for excellence, and we will maintain a significant management presence in Montreal.''
For complete news Go to http://www.bowater.com
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