Paper Industry July 2001 News

PAPER INDUSTRY NEWS - JULY 2001

This page contains pulp and paper industry news for July 2001

HOME	NEWS ARCHIVE

NEWS JULY 2001

Pacifica Papers Inc. Curtail Further Production

VANCOUVER, July 31 /CNW/ - Further to its announcement of July 5, 2001 that it would curtail production of approximately 8,500 tonnes of lightweight coated and telephone directory paper, Pacifica Papers Inc. announces that it has extended the downtime at its Port Alberni operations until August 5, 2001 to curtail production of an additional 5,000 tonnes. The extension of the curtailment will further enable the Company to maintain efficiency in the balance of inventory, order flow and machine capacity in response to weaker economic conditions in the key U.S. market.

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

ForestExpress Establishes The First Forest Products eBusiness Graduate Fellowship

Recipient Louisiana State University Agricultural Center Leads Forest eBusiness Research

ATLANTA (July 30, 2001) - ForestExpress, the transaction and processing network for the forest products industry, announced the establishment of the nation's first-ever graduate research fellowship in the area of forest products eBusiness.

ForestExpress has made a two-year commitment to the Louisiana State University Agricultural Center to fund the ForestExpress Fellowship which will address critical eBusiness issues affecting the forest products industry.

The fellowship will support a student in the Forest Products Marketing Program in the School of Forestry, Wildlife and Fisheries. The recipient of this fellowship will study eBusiness in the context of domestic and international wood products marketing, and technology applications to improve wood products business competitiveness.

"ForestExpress is the first to show such a high level of commitment to research in eBusiness for the forest products industry sector," said Dr. Richard Vlosky, program coordinator who will administer the fellowship.

Norampac Inc. to Acquire the Assets of Norseman, S.A. de C.V.

Montreal, Quebec, July 30th, 2001 --- Norampac Inc. (“Norampac”) has entered into an agreement with Norseman Allfoam Inc. to purchase the assets and business of its division of Mexico: Norseman, S.A. de C.V., which specializes in the manufacturing of polyethylene foam for protective packaging.

This acquisition allows Norampac to compliment the activities of its recently inaugurated division of Monterrey, Mexico, and offer a one stop shopping option for both corrugated and protective packaging. Both Mexican and Southwestern United States customers will benefit from the advantage of optimizing both the products offered and the quality of our sales service.

For complete newes Go to http://www.cascades.com/

Bowater Announces Financial Results for the 2Q of 2001

GREENVILLE, S.C.--(BUSINESS WIRE)--July 26, 2001--Bowater Incorporated (NYSE: BOW - news) today reported financial results for the second quarter of 2001. Net income for the second quarter was $18.6 million, or $.36 per diluted share on sales of $585.2 million. These results compare with net income of $33.7 million, or $.63 per diluted share on sales of $607.6 million in the second quarter of 2000. Included in the 2001 net income is a $19.4 million, or $.37 per diluted share gain, related to asset sales, and a $11.0 million, or $.21 per diluted share loss, resulting from foreign currency changes. Before these two items, net income was $.20 per diluted share.

Net income for the first six months of 2001 was $56.3 million, or $1.08 per diluted share, on sales of $1.2 billion. This compares with net income of $50.9 million, or $.95 per diluted share on sales of $1.2 billion for the first six months of 2000.

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

Abitibi-Consolidated Reports Second Quarter Earnings of $108 million

Q2 Highlights

- Net earnings of $108 million or $240 for the six-month period
- Operating profit of $276 million
- Annualized synergies of $219 million
- EBITDA margins of 29.7%

MONTREAL, July 26 /CNW/ - Abitibi-Consolidated announced second quarter earnings today of $108 million, or 25 cents per common share, on sales of $1.5 billion. This is a significant improvement over the same period last year in which earnings were $61 million, or 15 cents a share on sales of $1.5 billion. Earnings in the first quarter of 2001 were $132 million, or 30 cents a share on sales of $1.7 billion. Earnings in the first half of 2001 were $240 million, compared to $112 million for the first six months of 2000.

"Cost reductions, synergy programs and high-cost capacity closures continue according to plan," said President and Chief Executive Officer, John Weaver. "All of this resulted in a considerable year-over-year earnings improvement, despite difficult market conditions."

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

Cascades Inc. Announces Net Earnings of 43 Million Dollars for the 2Q 2001

Kingsey Falls, Quebec, July 25, 2001 --- Cascades Inc. (“Cascades”) (CAS, TSE) announces net earnings of $43 million ($0.52 per share) for the second quarter ended June 30, 2001, compared to $24 million ($0.36 per share) for the same period in 2000. Net sales increased by 5.2% during the second quarter of 2001 amounting to $754 million, compared to $717 million for the same period last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to $90 million for the period, compared to $89 million a year earlier.

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

GL&V Wins a $ 5.4 million Cnd. Contract to Rebuild Pulp Machine at CEASA Mill, Spain

July 24, 2001 GL&V is pleased to announce that its Spanish based subsidiary, GL&V Pulp and Paper SL (Valladolid, Spain), has been awarded a major contract for the rebuild of the CEASA’s pulp machine at the Navia mill, in Asturias, Spain. The value of the contract exceeds 4 million EUR ($ 5.4 million Cnd.) GL&V will supply the CEASA – ENCE Group mill with the engineering and necessary equipment for the retrofit of the existing pulp machine in order to achieve a production capacity increase, by increasing the speed at the wet end and improving dryness after the press section. The scope of the project includes the supply of a new hydraulic headbox (4,250 mm. width); the extension in length of the forming section by more than 3 m., and the rebuild of the press section. Delivery also includes the required auxiliary equipment, controls and instrumentation, as well as erection and start-up supervision. The project is scheduled to be operational by the end of May, 2002.

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

Rayonier Reports Higher 2Q 2001 Earnings

JACKSONVILLE, Fla.--(BUSINESS WIRE)--July 23, 2001--Rayonier (NYSE:RYN) today reported second quarter 2001 net income of $31.4 million, or $1.14 per share, compared to second quarter 2000 earnings of $17.4 million, or 63 cents per share. The substantially higher earnings were due to the previously announced Pinhook timberland sale, which contributed 75 cents per share, improved wood products performance and reduced interest expense. These were partially offset by lower timber and absorbent materials prices.

Compared to first quarter 2001 earnings of $12.3 million, or 45 cents per share, second quarter results were higher due to the Pinhook sale, partially offset by seasonally lower Northwest U.S. timber sales volume.

Second quarter 2001 sales of $346 million were $43 million above last year's second quarter and $70 million above first quarter 2001.

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

Kimberly-Clark Reports 2Q Earnings

Sales Increased 2.0 Percent to $3.5 Billion, Earnings From Operations of 81 Cents Per Share Equaled Prior Year; Results Achieved Despite Currency Effects and Higher Energy Costs

Cash Provided by Operations Improved Nearly 10 Percent Compared With Second Quarter of 2000

DALLAS, July 24, 2001--Kimberly-Clark Corporation (NYSE: KMB) today reported sales in the second quarter of 2001 were $3.5 billion, an increase of 2.0 percent compared with 2000. Excluding currency effects, sales rose about 5 percent, benefiting from continued volume growth and higher selling prices.

Second quarter earnings from operations of 81 cents per share were the same as in 2000. Increased pricing and sales volumes contributed positively; however, currency effects reduced earnings by 3 cents per share and the company incurred higher energy costs equivalent to 2 cents per share. As previously announced, the second quarter also included expenses of $18 million, or 2 cents per share, related to the start-up of a new consumer tissue machine and the company's new Cottonelle Fresh rollwipes operations.

For complete news Go to http://investor.kimberly-clark.com

Weyerhaeuser Reports 2Q Earnings Of 78 Cents Per Share On Net Sales of $3.9 Billion

FEDERAL WAY, WA, July 24, 2001.—Weyerhaeuser Company (NYSE: WY) today reported second quarter net earnings of $171 million, or 78 cents per share, on net sales of $3.9 billion. This compares with $203 million, or 89 cents per share, on sales of $4.2 billion for the second quarter of 2000.

Net earnings for second quarter 2001 include a gain of 7 cents per share for a one-time reduction in deferred taxes due to a lower Canadian corporate tax rate and 3 cents per share charge for costs associated with Westwood Shipping Line’s transition to a new charter fleet. Last year’s second-quarter earnings include an after-tax charge of 36 cents per share to cover estimated costs of a nationwide class action settlement and claims related to hardboard siding.

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

G-P Group Reports Second Quarter Earnings Buoyed By Consumer Products Business

ATLANTA, GA. July 19, 2001 -- Georgia-Pacific Group (NYSE:GP), the pulp, paper and building products business of Georgia-Pacific Corp., today reported net income of $29 million (13 cents diluted earnings per share) for the quarter ending June 30, 2001, including a one-time charge of $67 million ($43 million after tax, or 19 cents diluted earnings per share) associated with plant closures and indefinite curtailments in its gypsum wallboard business, versus $206 million ($1.20 diluted earnings per share) for the same period last year. Excluding the unusual item, net income for the second quarter 2001 was $72 million (32 cents diluted earnings per share).

Total sales for Georgia-Pacific Group in the second quarter 2001 were $6.6 billion compared with $5.6 billion in second quarter 2000. The group's earnings before income taxes, depreciation and amortization (EBITDA) were $774 million. Debt for Georgia-Pacific Group was reduced to $14.39 billion by the second quarter's end, compared with $14.78 billion at the end of the first quarter.

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

Domtar Announces net Earning of $76 M

Montréal, July 19 , 2001 — Domtar Inc. today announced net earnings of $76 million or $0.42 per common share for the second quarter of 2001, compared to $61 million or $0.33 per common share for the corresponding period of 2000. The operating profit reached $88 million compared to an operating profit of $120 million for the second quarter of 2000. Net sales reached $944 million versus $832 million for the same period last year.

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

Norske Skog Canada Plans Additional Pulp and Paper Curtailment

July 18, 2001 Vancouver, BC - Norske Skog Canada announced today it will take a further 14,000 tonnes of market pulp and 5,000 tonnes of newsprint out of production during the third quarter to keep inventory levels in line.

This will bring total maintenance and market-related pulp curtailment to 28,000 tonnes for the third quarter and 90,000 tonnes for the three fiscal quarters in 2001. The company said it is firmly committed to keeping a tight balance on inventory levels to match its order file.

The additional 5,000 tonnes of newsprint curtailment increases the total downtime to 31,000 tonnes in the third quarter and total annual downtime to 62,000 tonnes.

For complete news Go to http://www.norskeskog.no/

Norampac Reports Good Quarterly Results

Montréal, Québec, July 18, 2001 --- Norampac Inc. (“Norampac”) reports net earnings of $26 million for the second quarter of 2001, compared to net earnings of $27 million for the same quarter in 2000. Sales for the quarter were $307 million compared to $297 million for the same period in 2000.

Earnings before financial expenses, taxes depreciation and amortization (EBITDA) amounted to $55 million in the second quarter compared to $66 million for the same period in 2000.

For full results Go to http://www.cascades.com/

International Paper Reports Lower 2Q 2001 Earnings

STAMFORD, Conn., July 17 /PRNewswire/ -- International Paper (NYSE: IP) today reported second-quarter 2001 earnings of $64 million ($.13 per share) before special items, an increase of $40 million over the previous quarter. First-quarter 2001 earnings before special and extraordinary items were $24 million ($.05 per share). Earnings for the second quarter last year were $315 million ($.75 per share) before special items. Second-quarter 2001 net sales were $6.7 billion, compared to $6.8 billion in the second-quarter 2000 and $6.9 billion in the first-quarter 2001.

"The external environment continues to be very difficult. We are taking a whole series of actions to strengthen our company and improve profitability, and those internal initiatives helped us to achieve improved results this quarter," said John Dillon, chairman and chief executive officer. "We have continued to reduce our capacity to match demand from our customers, improved our operations and began to realign staff resources to better our financial results."

During the quarter and in early July, the company announced approximately 4,000 job reductions related to capacity shutdowns, internal reorganizations and streamlining of salaried staff functions.

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

Boise Cascade Reports Second-Quarter Earnings of $19.7 Million, Or 28 Cents Per Share

BOISE, Idaho, July 17 /PRNewswire/ -- Boise Cascade Corporation (NYSE: BCC) today reported second quarter 2001 net income of $19.7 million, or 28 cents per diluted share, compared with $31.0 million, or 46 cents per diluted share, in second quarter 2000. First quarter 2001 net income was $7.1 million, or 7 cents per diluted share, before nonroutine items.

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

Rock -Tenn Co. Reports Higher 3Q 2001 Results

Norcross, Ga., July 16, 2001 — Rock-Tenn Company (NYSE:RKT) today reported net sales and earnings for the third fiscal quarter ended June 30, 2001.

Net sales for the third fiscal quarter were $357.1 million, compared to net sales of $370.5 million in the same quarter last year. Net income was $9.1 million or $0.27 per diluted share in the third quarter of fiscal 2001 compared to net income of $2.6 million or $0.07 per diluted share in the same quarter last year.

Net income, excluding plant closing costs, was $10.7 million or $0.32 per diluted share in the third quarter of fiscal 2001. Net income, excluding plant closing and other costs, was $6.0 million or $0.17 per diluted share in the same quarter last year.

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

Kruger Modernizes Newsprint Machine No.1 at its Bromptonville Mill - Major Investment of 23M dollars

BROMPTONVILLE, Quebec, July 13 /CNW/ - Following a $23-million modernization program ($CAN), Kruger Inc. announces that it has reopened no. 1 newsprint machine at its Bromptonville mill, in the Eastern Townships after a 26-day shutdown.

Major improvements on this machine will lead to significant increases in paper quality and machine productivity. The investment covers a new headbox, modernization of the forming section as well as various improvements on the drying section, calender and winder.

"We are presently in a better position to serve our customers by offering newsprint with superior printability and runability in the pressrooms" said Mr. Daniel Archambault, General Manager of the Bromptonville Mill. This project is part of a comprehensive modernization program announced last June 5 and carried out with the support of Investment Québec's FAIRE program.

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

Plainwell Inc., Announces Agreement to Sell Consumer Product Division to Perkins Papers

EAU CLAIRE, July 12, 2001 Plainwell Inc. announced today that it has reached an agreement to sell their Consumer Products Division to Perkins Papers Ltd., a subsidiary of Cascades Inc. for a total purchase price of $US64.2 million. The sale would consist of two tissue mills located in Eau Claire, Wisconsin and Ransom, Pennsylvania, along with converting and distribution facilities for the Ransom facility located in nearby Pittston, Pennsylvania.

The Consumer Products Division is a leading manufacturer and marketer of a broad line of consumer tissue products, including bath tissue, paper towels, napkins and facial tissue, for the private label market, with an annual capacity of approximately 110,000 short tons.

"We look forward to the acquisition and being a part of the highly regarded, successful Perkins Paper Ltd. organization" stated Gary Hayden, President and COO of Plainwell Inc. "The synergies realized through this acquisition will enhance the position of Perkins Paper Ltd. as one of the leaders in the private label tissue market in North America."

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

International Paper Plans Indefinite Shutdown of Four Paper Machines; Restructures Forest Resources Business

STAMFORD, Conn., July 12 /PRNewswire/ -- International Paper (NYSE: IP) today announced plans to indefinitely shut down production capacity of 670,000 tons within its containerboard and coated papers businesses. Three paper machines at the company's Savannah, Ga., mill and one at its Hudson River mill in Corinth, N.Y., will be indefinitely shutdown.

"These are difficult decisions impacting mills with a significant history for our company. However, the strong dollar has continuously weakened our export business in containerboard, while increasing imports of coated paper," said John Dillon, chairman and chief executive officer. "We are committed to matching our production with customer demand. Shutting down these machines will allow the two mills to optimize remaining assets to better satisfy our customers."

For complete news Go to http://investor.internationalpaper.com/

Cascade to Acquire Two Tissue Mills in the US

Kingsey Falls (Québec), July 12, 2001 - Cascades Inc. announces that it has reached an agreement through its subsidiary Perkins Papers Ltd., to acquire the Consumer Products Division of Plainwell, Inc. for a total purchase price of $US 64.2 million. The Consumer Products Division consists of two tissue mills, located in Eau Claire, Wisconsin and in Ransom, Pennsylvania, having a combined annual capacity of close to 110,000 short tons of tissue paper made mostly of recycled fibres.

The tissue mills specialize in the manufacturing and selling of a wide range of bathroom paper, paper towels, napkins, and facial tissue mainly under private label for the American retail market.

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

Sonoco to Purchase U.S. Paper Mills Corp.

HARTSVILLE, S.C., July 12 /PRNewswire/ -- Sonoco (NYSE: SON), the global packaging company, has signed a definitive agreement to purchase U.S. Paper Mills Corp., a privately held company headquartered in De Pere, Wis., it was announced today by Harris E. DeLoach, Jr., president and chief executive officer. The purchase price was not revealed.

U.S. Paper Mills' principal businesses are the production and sale of lightweight paperboard for conversion into cores, composite cans and tubes, and the production of paper cores. They are the North American market leader in the production of lightweight tissue and towel coreboard.

Sonoco expects the all-cash purchase to be slightly accretive to earnings in the first year. Completion of the purchase, which is subject to regulatory approval, is expected in the third quarter. U.S. Paper Mills Corp. had sales of approximately $70 million in 2000.

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

Kruger Inc. - Corner Brook Pulp and Paper Makes Significant Investment and Reopens no. 7 Paper Machine

CORNER BROOK Newfoundland, July 10 /CNW/ - Following a $21 million investment, Corner Brook Pulp and Paper reopened its no. 7 paper machine today in the presence of the Honorable Roger Grimes, Premier of Newfoundland and Labrador, Walter Mlynaryk, Executive Vice-President and Chief Operating Officer of Kruger Inc., Gerry Byrne MP for Humber-St. Barbe-Baie Verte, Rick Woodford, Minister of Forest Resources and Agrifoods, and Kevin Sheahan, Vice President and General Manager of Corner Brook Pulp and Paper. Many of the employees responsible for rebuilding and restarting the machine were also present. "This is a significant project that we have completed here today.

This type of investment is what is required to remain competitive in this business and ensure we continue to meet customer demands. Kruger is very pleased that we are able to continue to demonstrate growth for this business here in Corner Brook," said Walter Mlynaryk, of Kruger.

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

ABB Wins US$ 17-million Contract to Automate World’s Largest Paper Machine

Industrial IT key to enabling Papierfabrik Palm in Germany

Zurich, Switzerland, July 09, 2001 – ABB, the global technology company, today announced it has received an order worth US$ 17 million to install the process control and instrumentation system in the largest paper machine ever built.

The brain of the giant PM 6 paper machine – to be built by Finland’s Metso Paper Inc. (formerly Valmet) for Papierfabrik Palm GmbH & Co. KG in Germany – will be based on ABB’s Industrial IT technology. The system will include integrated process, quality and drives control, 100 percent defect detection, online machinery diagnostics and a real-time data warehouse for information sharing.

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

Tembec to Balance Pulp Inventories - Tembec Announces Major Curtailment of pulp Production

TEMISCAMING, July 6 /CNW/ - Tembec announced today that it would reduce its output of pulp by over 100,000 tonnes during the quarter July 1st to September 30th , 2001. The Company has already taken 100,000 out of production during the first six months of the year. "Demand is expected to be weak during the summer months. The curtailment will ensure we meet our customer demands while reducing our inventories to their normal levels by September 30th, 2001" said Mr. Terrence Kavanagh who is President of Tembec's Pulp Group. "We expect demand to show some increase in the last quarter and pricing should show some improvements if the inventory overhang is cleaned up during the summer."

Tembec is one of the world's largest producers of pulp with a capacity in excess of 2.0 Million tonnes per year with pulp mills in Canada and Europe.

At the same time, Tembec announced it will also curtail lumber production by approximately 50 Million feet over the next three months to reflect market conditions for lumber and wood chips.

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

Pacifica Papers Inc. - Downtime Announced at Alberni Operations

VANCOUVER, July 5 /CNW/ - Pacifica Papers Inc. announced today that it will curtail approximately 8,500 tonnes of lightweight coated and telephone directory paper production at its Port Alberni operation in late July. The curtailment is in response to weaker economic conditions in the key U.S. market and will enable the company to maintain efficiency in the balance of inventory, order flow and machine capacity. The curtailment at Alberni will result in the mill being closed for the period of July 23 - 29, 2001. Going forward, Pacifica remains committed to monitoring market conditions.

Pacifica Papers Inc. is a producer of value-added groundwood printing and communications papers including lightweight coated paper, soft nip calendered paper, telephone directory paper, machine finished hibrite paper, and newsprint. Pacifica's operations include two paper mill complexes at Powell River and Port Alberni, British Columbia, with a combined annual production capacity of close to 900,000 tonnes. Pacifica's shares trade on The Toronto Stock Exchange under the symbol "PPP".

Paper Tiger, Hidden Draggons

Friends of Earth on Asia Pulp & Paper

http://www.foe.co.uk/resource/reports/paper_tiger_hidden_dragons.pdf