Paper Industry News For Jan. 2000

PAPER INDUSTRY NEWS - JAN. 2000

This page contains pulp and paper industry news for Jan. 2000.

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NEWS JANUARY 2000

Fisher-Rosemount Partners with Voith Sulzer to Develop Mill Automation Solutions for Pulp and Paper Manufacturers

Open, Integrated Control Systems and Process Equipment to Feature PlantWeb Field-Based Architecture and Millennium Quality Control Management System

MONTREAL (January 31, 2000) -- Fisher-Rosemount has formed an alliance with Voith Sulzer Automation (VSA), a major supplier of Quality Management Control Systems to the pulp and paper industry, to develop comprehensive mill-wide automation solutions built on Fisher-Rosemount's PlantWeb field-based architecture and VSA's Millennium Quality Control Management System.

For complete news Go to http://www.frco.com/fr/news

Svenska Cellulosa, SCA: 1999 Gave Highest Result Ever

STOCKHOLM, Sweden--(BUSINESS WIRE)-Jan. 31, 2000--Svenska Cellulosa, SCA, today reported its full year result 1 January - 31 December 1999.

-Earnings after financial items, excluding nonrecurring items, improved 16%, the highest result ever.
-Cash flow from current operations improved significantly and was the best ever.

For complete results Go to http://www.sca.se/

1999 Results for Canadian Pulp & Paper : Record Shipments & Improved Profits

MONTREAL, Jan. 31 /CNW/ - Canada's pulp and paper industry improved its overall financial results in 1999, ending a disappointing decade on an upbeat note and providing renewed optimism for the coming year. The industry shipped a record 31 million tonnes to world customers, operating rates reached 94%, pricing strengthened in all categories and industry profits doubled to $600 million. (details attached)

For details Go to http://www.newswire.ca/

Donohue Posts Net Earnings of $212 Million in 1999 on Record Sales of $2.5 Billion

MONTRÉAL, Québec, January 31, 2000 – Donohue Inc. announces that net earnings for the year ended December 31, 1999, were $212.4 million, or $1.57 per share, on net sales of $2.5 billion. The fourth quarter of 1999 was the 29th consecutive profitable quarter for Donohue, with net earnings rising to $81.2 million, or $0.60 per share, on net sales of $678 million.

The earnings include non-recurring items totaling $29 million resulting from a recovery of taxes and a gain from the sale of Donohue Matane Inc., and from the disposition of property in Ontario. Net earnings for the fourth quarter of 1998 were $69.9 million, or $0.53 per share.

For complete news Go to http://www.donohue.ca/

DOMTAR'S Net Earnings more than Doubled in 1999 Compared to1998

Return on equity of 10% compared to 5% last year

Montréal, January 27, 2000 — Domtar Inc. announced today net earnings of $163 million, or $0.87 per common share for the year ended December 31, 1999, compared to $74 million or $0.44 per share in 1998. Operating profit in 1999 reached $379 million, compared to $200 million in 1998.

The increase in operating profit is mostly attributable to the Quality and Productivity Improvement Program, and the inclusion of E.B. Eddy results (1998 results included only five months). Weaker prices in our main segment of activity, papers, were compensated by higher average prices in the wood segment and at Norampac, as well as by a more favourable exchange rate. Annual sales were up 31% to $3,083 million in 1999, compared to $2,348 million in 1998.

For complete news Go to http://www.domtar.com/

Sappi Earnings Double

JOHANNESBURG, South Africa, Jan. 27, 2000-- Global pulp and paper group Sappi produced excellent results for the first quarter to December 31, 1999. Headline earnings per share of 159 cents (26 US cents) was more than double that of the comparable period last year (75 cents) (13 US cents), in spite of an increase in the number of shares in issue. Earnings were marginally below the final quarter of 1999 because of seasonal patterns in North America and South Africa and a fire at the Muskegon plant in North America. Adverse weather, which affected shipments at year end also had a negative impact on earnings.

For complete results Go to http://www.sappi.com/

Kimberly-Clark's Top-Line Growth Accelerates to 10 Percent in the Fourth Quarter of 1999; Earnings From Operations of 79 Cents Per Share Establish New Quarterly Record

Reported Fourth Quarter Earnings Were 77 Cents Per Share; Including Charges for Unusual Items of 2 Cents Per Share

Results Highlighted by Strong Performance in Global Personal Care With Continued Improvement in Europe

DALLAS, Jan. 25 /PRNewswire/ -- Driven by a double-digit gain in sales volumes, fourth quarter sales for Kimberly-Clark Corporation (NYSE: KMB) jumped 10.2 percent to $3.4 billion in 1999. The strong top-line growth led to all-time record quarterly earnings from operations of 79 cents per share, an increase of 16.2 percent compared with 68 cents per share in the prior year. The fourth quarter capped a year of record-setting margin and earnings performance for Kimberly-Clark.

For complete news Go to http://www.prnewswire.com

Avery Dennison 4th Q & Year end Results Reach Record Highs

24 percent earnings-per-share growth in the quarter drives eighth consecutive year of double-digit increases

PASADENA, Calif. - January 25, 2000 - Avery Dennison Corporation (NYSE/PCX:AVY) today reported fourth quarter 1999 and year-end financial results, announcing that sales, earnings and return on investment reached record high levels, excluding a restructuring charge in the first quarter. "1999 was a great year for Avery Dennison and its shareholders," said Philip M. Neal, president and chief executive officer. "The Company posted yet another year of record financial performance. Our outstanding earnings-per-share growth reflects our commitment to grow the top line, as well as the success of our productivity improvement efforts."

For complete news Go to http://www.averydennison.com

Rayonier Reports Strong Fourth Quarter Earnings and Progress on Asset Sales

STAMFORD, CT, January 24, 2000 — Rayonier (NYSE:RYN) today reported fourth quarter 1999 earnings of $19.3 million, or 69 cents per share, compared to $14.1 million, or 50 cents per share, in the fourth quarter of 1998 and $17.1 million, or 61 cents per share, in the third quarter of 1999.

For complete news Go to http://206.105.0.64/ray

St. Laurent Paperboard Inc. Completes the Sale of its Liquid Packaging Converting Facility in Montreal, Quebec

MONTREAL, Jan. 20, 2000-- ST. LAURENT PAPERBOA(TSE:SPI. - news; NYSE:SLW - news) St. Laurent Paperboard Inc. (``St. Laurent''), Montreal, Quebec, announces that it has completed the sale of its liquid packaging converting facility located in Montreal, Quebec to Elopak Canada Inc. This facility employs 54 people and produces approximately 400 million gable top cartons annually supplied to dairies and juice producers.

For complete news Go to http://www.stlaurent.com

American Israeli Paper Mills/Kimberly-Clark Joint Venture Plans Future Production Expansion

HADERA, Israel, Jan. 20 /PRNewswire/ -- American Israeli Paper Mills Ltd, (Amex: AIP - news; AIPM) announced today that Hogla-Kimberly (HK), a joint venture company of AIPM and Kimberly-Clark (KC), concluded another successful year. During this year, HK extended its activity in Israel and entered the Turkish market with the acquisition of Ovisan, a local manufacturer of disposable diapers. As part of its plans for the future, HK is investigating the possibility of expanding its local capacity in premium tissue required for the production of premium tissue based products.

For complete news Go to http://biz.yahoo.com/

Chesapeake’s European Specialty Packaging Business Announces Acquisition Plans

Richmond, VA, Jan 19, 2000 Chesapeake Corporation (NYSE:CSK) today announced that its European specialty packaging subsidiary, Field Group plc, intends to acquire the Scottish folding carton business of SCA Packaging. This business, with revenues of approximately £5 million, (approximately $8.2 million), based in Pollokshaws, Glasgow, Scotland, was acquired by SCA from Rexam in February 1999, and previously traded under the name John Horn.

For complete news Go to http://www.cskcorp.com/cc/

Weyerhaeuser Reports Earnings of $527 Million for 1999; Strong Markets Contribute to Record Net Sales of $12.3 Billion

FEDERAL WAY, WA, Jan 19, 2000 —Weyerhaeuser Company today announced unaudited earnings of $527 million, or $2.56 per share, for 1999. This compares with $294 million, or $1.48 per share, in 1998. The 1999 earnings include charges for the cumulative effect of a change in accounting principle and other nonrecurring items related to the acquisition of MacMillan Bloedel Limited, facility dispositions and closures. Earnings before these charges were $681 million, or $3.31 per share. Net earnings before nonrecurring items in 1998 were $339 million, or $1.71 per share.

For complete news Go to http://www.weyerhaeuser.com

Happy Birthday to Us! Weyerhaeuser Celebrates Centennial Today

FEDERAL WAY, WA, Jan 18, 2000 – Weyerhaeuser Company celebrates a special milestone today. It turns 100, and begins its second century. Founded in Tacoma, Wash., on January 18, 1900, Weyerhaeuser is one of the oldest, continuously operating companies in Washington State, and a 20th Century American success story.

For complete story Go to http://www.weyerhaeuser.com

Consolidated Papers, Inc. Reports Improved Fourth Quarter Results; Year-end Results Show Improvement Trend in Demand, Operating Rates and Selling Prices

WISCONSIN RAPIDS, Wis., Jan. 18, 2000 Consolidated Papers, Inc. (NYSE: CDP) today reported that fourth quarter 1999 performance was better than the same period in 1998. Financial results for the full year 1999 were not as strong as the prior year due to weak first and second quarters. Fourth quarter earnings per share were 25 cents, compared with 21 cents per share in the third quarter of 1999 and 21 cents per share in the fourth quarter of 1998.

For complete news Go to http://www.consolidatedpapers.com

Champion International Corp. Reports 4Q Earnings Of $79 Million Or $.82 Per Share Before An Extraordinary Charge

Stamford, CT, January 18, 2000 – Champion International Corporation (NYSE:CHA) today reported fourth quarter net income of $79 million or 82 cents per diluted share, before an extraordinary charge of $2 million or three cents per share for the early retirement of debt. This compares to net income of $12 million or 13 cents per share, before special items, for the fourth quarter of 1998, and net income of $77 million or 80 cents per share, before an extraordinary charge, for the third quarter of 1999.

For complete news Go to http://www.championpaper.com/

American Pad & Paper Files for Protection under Chapter 11

Dallas, January 14, 2000 – American Pad & Paper Company (OTCBB:AMPP) (AP&P) announced today that it has filed a petition in the United States Bankruptcy Court in Delaware to convert the involuntary Chapter 11 petition filed by its bondholders on January 10, 2000 to a voluntary Chapter 11 proceeding under the Federal Bankruptcy Code. AP&P is seeking protection under Chapter 11 to ensure that day-to-day operations continue normally. The Company plans to pursue various strategic and financial alternatives, including asset sales and restructuring the Company’s debt. As previously announced, the Company has retained Lazard Frères & Co. LLC as advisors to assist it in this process.

For complete news Go to http://www.d-press.com/

CPPA - MONTHLY MARKET PULP STATISTICS

MONTREAL, Jan. 13, 2000- The Canadian chemical market pulp industry produced 815 000 tonnes in December, up 67 000 tonnes, or 9 percent, over December 1998. The industry shipped 846 000 tonnes, which was 8 percent higher than the same period last year. Producer stocks ended the month at 546 000 tonnes, down 31 000 tonnes from November. For the month, domestic shipments totaled 64 000 tonnes, 2 percent lower than December of 1998; deliveries to the United States, at 303 000 tonnes, were up 21 percent over the same period last year; shipments to the Asia/Africa region were 172 000 tonnes, an increase of 50% between December 1999 and December 1998. At current shipping rates, it is estimated that Canadian producers held 22 days of supply at the end of December, two days less than at the end of November.

For complete statistics Go to http://www.newswire.ca

Valmet and Neles Automation rebuild Stora Enso BM in Imatra, Finland

Jan 13, 2000, Valmet and Neles Automation will supply Stora Enso Packaging Boards of Imatra, Finland with a rebuild of their board machine no. 4. The main target of the modernization is to improve the printability characteristics of the liquid packaging boards produced. The project will be carried out in November-December this year.

For complete news Go to http://www.valmet.com

Harnischfeger Announces Results of Beloit Auction

MILWAUKEE, Jan. 12, 2000 Harnischfeger Industries, Inc. (OTC Bulletin Board: HRZI) today announced results of the auction conducted January 10 and 11, 2000 of assets of Beloit Corporation, the company's pulp and papermaking equipment manufacturing and servicing subsidiary. The company and its U.S. subsidiaries, including Beloit, filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code on June 7, 1999.

The winning bids are: Pulp and Finishing Divisions: Groupe Laperriere & Verreault Inc.
Woodyard Division: RCI Acquisition Inc. (a management buy out group)
OASIS: O&OC Acquisition Company, Inc. (a management buy out group)
Paper Aftermarket and Roll Covers Division: Valmet Corporation
Paper Technology: Mitsubishi Heavy Industries, Inc.

For complete news Go to http://www.harnischfeger.com

International Paper Reports Improved Earnings for Fourth Quarter, Year

PURCHASE, N.Y., Jan. 11, 2000 International Paper (NYSE: IP) reported fourth-quarter 1999 earnings of $227 million ($.55 per share) before special items. This is an increase of 20 percent or $35 million ($.09 per share) compared to third-quarter 1999 net earnings, which were $192 million ($.46 per share) before special and extraordinary items. Fourth-quarter 1998 earnings before special items were $58 million ($.14 a share). Fourth-quarter 1999 net sales were $ 6.3 billion, the same as the previous quarter. All previous periods have been restated to include Union Camp Corporation.

For complete news Go to http://www.corporate-ir.net/

Westvaco to Sell its Liquid Packaging Business

NEW YORK, NY, January 11, 2000 -- Westvaco Corporation (NYSE: W) today announced that it has signed a letter of intent to sell its liquid packaging business to Blue Ridge Paper Products Inc., headquartered in Asheville, NC. The purchase price was not disclosed. The sale, which will be finalized next month, will include Westvaco's liquid packaging plant located in Richmond, VA, which has about 100 employees and two state-of-the-art offset presses.

For complete news Go to http://www.westvaco.com/news

Caraustar Industries, Inc. Announces Intent to Purchase Arrow Paper Products Co. Inc.

ATLANTA, Jan. 10, 2000 Caraustar Industries, Inc. (Nasdaq: CSAR) today announced that it has entered into a letter of intent to acquire Arrow Paper Products Company, Inc. The transaction is expected to close by January 31, 2000.

Arrow began operations in 1948 in Saginaw, Michigan, and currently operates two tube and core converting facilities. These operations serve customers in the automotive, film, housewares and other specialty tube and core markets. Arrow had $5.2 million in sales for the year ended December 31, 1998.

For complete news Go to http://www.corporate-ir.net/

Global Forest Products Production Down, Profitability Weak: Survey by Pricewaterhouse Coopers

VANCOUVER, BC Jan. 10, 2000--The global forest and paper industry experienced the first drop in paper and board production in nearly 20 years during 1998, according to the 1999 Pricewaterhouse Coopers Global Forest & Paper Industry Survey released today.

The Survey reports that worldwide production was 297 million tonnes in 1998, down 0.7% from 298 million tonnes in 1997.

The largest reductions came in Japan and elsewhere in Asia. Despite the reduction in actual production, capacity was up 6.8 million tonnes in 1998, or 2.1% to 328.1 million tonnes.

For complete survey report Go to http://www.pwcglobal.com/extweb

Nexfor Consolidates Pulp and Paper into Single Business Unit

TORONTO, Jan. 7, 2000- Nexfor Inc. today announced it has consolidated its market pulp and specialty paper operations into a single business unit.

"We are combining our Thurso Hardwood Kraft Pulp mill with our Edmundston/Madawaska and Mid-West U.S. paper operations into a single business entity with common operating goals and a lower overall cost structure," said Nexfor President and CEO, Dominic Gammiero.

For complete news Go to http://www.newswire.ca/releases

Westvaco Corporation Completes Acquisition of Mebane Packaging

NEW YORK--(BUSINESS WIRE)--January 7, 2000--Westvaco Corporation (NYSE: W - news) today completed its previously announced acquisition of Mebane Packaging Group, a leading supplier of packaging for pharmaceutical products and personal care items, based in Mebane, NC.

"This acquisition is an outstanding strategic fit for Westvaco because it complements our existing consumer packaging operations and positions us for faster growth in premium market segments,'' said John A. Luke, Jr., Chairman and CEO. "Pharmaceutical and personal care markets are particularly attractive to us because of their size and growth potential. Mebane is a leading domestic supplier to major multinational companies in those market segments and also participates in markets for high-end media and promotional packaging.''

For complete news Go to http://www.westvaco.com

Harnischfeger Announces Selection of Initial Bids for Beloit

MILWAUKEE, Jan. 6, 2000- Harnischfeger Industries, Inc. (OTC Bulletin Board: HRZI) today announced the selection of initial bids for the sale of assets of Beloit Corporation, the company's pulp and papermaking equipment manufacturing and servicing subsidiary. The company and its U.S. subsidiaries, including Beloit, filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code on June 7, 1999.

For complete news Go to http://www.harnischfeger.com/news

Valmet makes offer for Beloit's Paper Machine Service Assets

Jan 06, 2000 Metso Corporation's fiber and paper technology business area, Valmet, has today made an offer to purchase certain assets of the American paper machine manufacturer, Beloit, whose parent company Harnischfeger Industries is subject to Chapter 11. The offer includes Beloit's roll cover division, paper machine aftermarket business assets and the related paper machine technology. The annual net sales of the businesses included in the offer are estimated to be approximately USD 200 million. The Division employs about 800 people in the USA and France.

For complete news Go to http://www.valmet.com

Norbord confirms Chambers County, Alabama site for new OSB plant

TORONTO, Jan. 4, 2000 - Norbord Industries Inc., a unit of Nexfor Inc., today confirmed it will build a $120 million (US) Oriented Strand Board (OSB) plant in Chambers County, Alabama. Construction is now underway and is expected to be completed within 16 months. The mill, which will employ 130 people directly and create approximately 400 secondary jobs, will be built on a 320-acre site in Huguley, southwest of Lanett, near the Alabama-Georgia border.

For complete news Go to http://www.newswire.ca/releases

U.S. Can Completes Acquisition of European Packaging Co.

OAK BROOK, Ill., Jan. 3, 2000-- U.S. Can Corporation (NYSE: USC - news) announced today that it completed the acquisition of May Verpackungen, a subsidiary of May Holding Group, on Wednesday, December 29, 1999.

May, headquartered in Erftstadt, Germany, is a leading manufacturer of pet food and specialty food packaging as well as aerosol cans, primarily dedicated to whipping cream. The company's sales for the 12 months ended September 30, 1999 were over DM 300 million or approximately $160 million. Details of the acquisition were not disclosed.

For complete news Go to http://biz.yahoo.com/prnews/