| PAPER INDUSTRY NEWS - OCTOBER 2000 |
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NEWS OCTOBER 2000
Norske Skog Canada Exploring Options for Sale of Mackenzie Pulp mill
VANCOUVER, Oct. 31 /CNW/ - Norske Skog Canada said today it is exploring options for the sale of the company's Mackenzie pulp mill. The mill, located in the northern interior of British Columbia, is a stand-alone pulp operation with total annual production capacity of 230,000 tonnes.
Headquartered in Vancouver, Norske Skog Canada is the largest producer of lightweight printing papers in western North America. The company's strategy is centred on its core uncoated groundwood paper business - with one million tonnes of paper capacity at its Elk Falls and Crofton pulp and paper mills located on Vancouver Island.
For complete news Go to http://www.newswire.ca/releases
Tembec Announces Completion of the Purchase of two Pulp Mills in France
PARIS, Oct. 31 /CNW/ - Tembec announced today that its subsidiary Tembec S.A. has completed the acquisition of all the shares of two subsidiaries of the LaRochete Group: Cellurhône S.A. and Pyrénécell S.A. in France. The purchase price of Euro 122 Million includes working capital of Euro 34 Million. As part of the transaction, LaRochette S.A. will be entitled to receive potential additional payments up to a maximum of Euro 61 Million over the next three years under a "Contingent Value Right" (CVR). The CVR is related to the price of pulp.
For complete news Go to http://www.newswire.ca/
Tembec Inc. - Pulp Market Outlook
TEMISCAMING, Oct. 30 /CNW/ - Tembec Inc. announced today that it will take the necessary downtime to prevent any build-up of its pulp or product inventories.
Terrence P. Kavanagh, President of Tembec's Pulp Group said "The pulp and paper market fundamentals are strong as demonstrated by high operating rates which are in excess of 95%. However, we are experiencing a 'ripple effect' caused by a combination of factors ranging from a weak Euro, some over- exuberance in the market and flattening demand. To compensate, our intention is to curtail production as required to maintain our normal inventory levels".
For complete news Go to http://www.newswire.ca/
Abitibi - Consolidated 3Q Earning up 77% to $108 Million
MONTREAL - October 30, 2000 - Abitibi-Consolidated reported third quarter net earnings today of $108 million, or 24 centsper fully diluted common share. This is an improvement of 77%, or $47 million, when compared to the second quarter of 2000 and 125%, or $60 million, when compared to the third quarter of 1999. Reflected in the results is a $16 million pre-tax charge in connection with the refinancing of the Company's bridge loan used to complete the Donohue acquisition. Excluding this charge, earnings per share for the quarter would have been 27 cents.
For complete news Go to http://www.abicon.com
Greif Bros. Corporation to Acquire Van Leer Industrial Packaging in $620 Million Transaction
Greif to be Worldwide Leader in Industrial Shipping Container Business With Global Platform for Growth in European, Asian and Latin American Markets
International Transaction Transforms One of America's Oldest Heartland Corporations; Globalization Powering Fundamental Change in Container Business
Greif Expands Ability to Deliver Integrated Packaging and Shipping Solutions to Multinational Corporations
DELAWARE, Ohio, Oct. 30 Greif Bros. Corporation (Nasdaq: GBCOA; GBCOB), the leading U.S. manufacturer of industrial shipping containers, today announced the signing of a definitive agreement to purchase the Van Leer industrial packaging division from Huhtamaki Van Leer Oyj of Espoo, Finland (HEX: HVL1V; AEX: HVL;) for US $620 million, which includes the assumption of debt and other obligations as of the closing date.
This acquisition will effectively double the size of Greif Bros. Corporation (``Greif'') and give the company a strong competitive position in the key global markets of Europe, Asia and Latin America. When the acquisition is completed, Greif will operate in over 200 locations in over 40 countries with approximately 11,000 employees.
For complete news Go to http://www.greif.com/
General Electric To Acquire Honeywell in a Tax-Free Merger for $45 Billion
Honeywell Shareowners to Receive GE Stock
Jack Welch to Continue as GE Chairman until End of 2001
New York City – October 22, 2000 – The General Electric Company (NYSE: GE) and Honeywell (NYSE: HON) today announced that GE has agreed to acquire Honeywell in a tax-free merger valued at $45 billion dollars, plus assumed debt. As part of this definitive agreement, Honeywell shareowners will receive 1.055 shares of GE stock in exchange for one share of Honeywell. Along with other customary deal protections, GE will receive an option for 19.9% of Honeywell’s outstanding stock.
For complete news Go to http://www.honeywell.com/
BILLERUD -Stora Enso and AssiDomän to form Joint Company for Packaging Paper
Oct. 27, 2000, Stora Enso and AssiDomän have reached an agreement in principle to form a new 50/50-owned company from the paper mills Gruvön (Stora Enso) and Karlsborg and Skärblacka (AssiDomän). The formal merger and formation of the new company is expected to take place on 1 January 2001. The planned name of the company is Billerud. Synergy effects will amount to MSEK 200 (MEUR 24). The intention is that the shares in Billerud will be listed on the OM Stockholm Exchange.
Billerud is expected to achieve a full-year turnover of approximately MSEK 6,200 (MEUR 730). Pro forma for 1999 the combined operating profit before depreciation for the three units amounted to MSEK 629 (MEUR 74). Operating profit before depreciation for the first half of 2000 amounts to approximately MSEK 712 (MEUR 84). The company will have about 2,400 employees.
For complete news Go to http://www.storaenso.com/
Harnischfeger Files Plan of Reorganization
MILWAUKEE, Oct. 26 /PRNewswire/ --Harnischfeger Industries, Inc. (OTC Bulletin Board: HRZIQ) ("HII") today filed a Joint Plan of Reorganization ("Plan") and Disclosure Statement in its Chapter 11 proceeding. The Plan, which covers HII and 57 of its domestic subsidiaries, reflects a consensual arrangement with both the official HII and Beloit creditors committees appointed in the proceeding.
For complete news Go to http://www.harnischfeger.com/
HELSINKI, Finland (AP), Oct. 25, 2000-- Finland, known for its technical innovations in an increasingly wireless society, is also seeing a sudden surge in its more traditional export sector, the forest industry.
Buoyed by a strong world economy, the country's paper and pulp makers are enjoying record growth, according to a report released Wednesday by the Finnish Forest Research Institute. Forecasts for 2001 are equally good.
Pretax profits of the country's three largest forest groups, UPM-Kymmene, Stora Enso and Metsaliitto, are expected to top $2.8 billion this year, a 54 percent increase from last year,the government-run institute said.
The total value of forest product exports will grow by nearly 4 percent this year and in 2001, up from 2.7 percent growth in 1999, according to the report. ``The Finnish forest sector always does well when the world economy is doing well,'' senior researcher Lauri Hetemaki said.
In an industry where pricing is in dollars, a decline in the value of the European Union's common currency also has helped Finnish paper and pulp makers and sawmills.
``So, we're in a situation where there's high demand in the export sector, Finland is competitive because of the weak euro, and there's very little new production coming onto the market,'' Hetemmaki said.
On Tuesday, the world's third-largest papermaker, Helsinki-based UPM-Kymmene, released a record third-quarter result and predicted strong growth for the rest of the year.
UPM-Kymmene's net sales in the three months ending Sept. 30 hit $2 billion, up from 2 billion euros for the same period in 1999, while its nine-month profit doubled to $962 million.
From January to December, UPM-Kymmene's total paper production topped 6,000 million tons -- up 10 percent on the same period last year.
Juha Niemela, the group's chief executive officer, said some of their plants were runnning at full capacity. ``For about a year now we've been going at full steam, and at times there's been a shortage of pulp and paper on the markets,'' Niemela said.
Market analysts are expecting equally strong performances from Stora Enso and Metsaliitto -- which includes the Metsa Serla group -- when they announce their third-quarter earnings next week.
Export prices of paper products will grow by an average 12 percent this year and in 2001, the forest research institute said. The value of pulp and paper exports is expected to grow 14 percent this year and 15 percent in 2001.
Stora Enso North America to Permanently Retire Two Paper Machines, Reducing Annual Capacity of Coated Papers by 80,000 tonnes
Oct. 25, 2000, Stora Enso is permanently retiring two paper machines at its North American Division. The No. 15 paper machine at the Division’s Wisconsin Rapids Paper Mill, in Wisconsin Rapids, Wis., and the No. 61 paper machine at Stora Enso North America’s Whiting Paper Mill, in Whiting, Wis., will be permanently shutdown.
Before this announcement, both machines were on stand-by status, operating only as needed. Neither machine is currently producing paper. The 63-year-old No. 15 machine, which has the capacity to produce 57,000 tonnes of coated groundwood-free fine papers a year, has not made paper since June of 1999. The 108-year-old No. 61 paper machine, which has the capacity to produce 23,000 tonnes of lightweight-coated groundwood papers annually, has not been operated since October of 1998.
For complete news Go to http://www.storaenso.com/
Financial results for the third quarter 2000 Improved profitability and start-up of new paper machine at Donnacona
Montreal, October 24, 2000. Alliance Forest Products Inc. recorded net sales of $262.8 million during the quarter ended September 30, 2000, compared to $268.5 million for the same quarter of 1999. Operating income at $25.2 million has continued to improve, having risen $2.9 million over the previous quarter and $23.8 million over the corresponding year-earlier quarter. The Company booked a $1.5 million non-recurring charge to account for weak lumber prices, and hence bring the value of inventories down to the lesser of cost and net realizable value. Net earnings stood at $14.4 million or $0.48 per share compared with a net loss of $5.0 million or $0.13 per share in 1999.
For complete news Go to http://www.alliance-forest.com
Bowater Announces Financial Results for 3Q of 2000
GREENVILLE, SC---Bowater Incorporated (NYSE: BOW) today reported financial results for the third quarter of 2000. Net income for the third quarter was $50.0 million, or $.96 per diluted share, after deducting unusual charges totaling $9.8 million (pre-tax), or $.12 per share. The company earned $1.08 per share before such charges, which included a loss on foreign exchange, a charge for certain stock-based incentive arrangements, and a casualty loss for pine-beetle damage to woodlands in the southern United States. This compares with a net loss of $.98 per diluted share in the third quarter of last year, including a loss on the sale of assets of $.68 per share.
For complete news Go to http://www.bowater.com/
All-Time High Quarterly Sales Propelled K-C's 3Q Earnings From Operations to a Record 84 Cents/Share, an Increase of 12.0% Compared With 1999
Sales and Earnings Growth Achieved Despite Currency Effects That Reduced Sales By 2 Percent and Net Income by 2 Cents Per Share
DALLAS, Oct. 23 /CNW/ -- Kimberly-Clark Corporation (NYSE: KMB) today reported that new and improved products and global expansion of its core businesses lifted sales in the third quarter of 2000 to $3.5 billion, an increase of 6.7 percent compared with 1999. However, excluding currency effects and businesses divested in 1999, sales rose approximately 10 percent.
The sales gain, combined with improved manufacturing operations and lower promotion costs, more than offset significantly higher raw materials costs and boosted the company's operating margin, excluding unusual items, to a record 18.9 percent. Third quarter earnings from operations of 84 cents per share increased 12.0 percent from 75 cents per share in 1999, setting an all-time quarterly record. The decline in value of key European currencies reduced net income by 2 cents per share in the third quarter of 2000.
For complete news Go to http://www.newswire.ca/
Fletcher Challenge Canada Pulp Mills to Take Downtime
VANCOUVER, Oct. 23 /CNW/ - Fletcher Challenge Canada's three pulp mills will reduce capacity by 25,000 metric tonnes in the fourth calendar quarter of this year. The company will consider further curtailments should market conditions warrant.
The company pushed scheduled maintenance shutdowns to this period in order to run earlier in the year at maximum production capacity - in some cases exceeding 100 per cent rated capacity - when demand for market pulp was extremely strong. The production curtailment comes at an opportune time given current de-stocking by many pulp customers.
For complete news Go to http://www.newswire.ca
Weyerhaeuser Reports Lower Third Quarter Earnings
FEDERAL WAY, Wash. Oct. 19, 2000— Weyerhaeuser Company (NYSE: WY) today reported third-quarter net earnings of $199 million, or 90 cents per common share. This compares with $237 million, or $1.18 per common share, for the same period last year.
Net sales for third quarter 2000 were $3.7 billion, compared with $3.1 billion for the same quarter last year.
For complete news Go to http://www.weyerhaeuser.com/
Domtar continues its profitable growth : Net earnings increase by 20%
Montréal, October 19, 2000 Domtar Inc. announced today a 20% increase in net earnings to $60 million, or $0.33 per common share, for the third quarter of 2000, compared to $50 million, or $0.27 per common share for the third quarter of 1999. Operating profit grew by 9% to $121 million for the third quarter of 2000, compared to $111 million for the same period in 1999. Net sales increased by 19% to $954 million, compared to $804 million in the third quarter of 1999. The third quarter of 2000 includes the results of Ris Paper Company Inc., acquired July 31st, 2000.
For complete news Go to http://www.domtar.com/
New Profitability heights for Norampac Inc.
Montreal (Quebec), October 18, 2000 --- Norampac Inc. ("Norampac") reaches new levels of profitability in its quarterly results, reporting net earnings of $29 million for the third quarter of 2000, which represents twice the net earnings recorded during the corresponding quarter of 1999 and an increase of $2 million or 7% over the previous quarter.
Earnings before interest, taxes, depreciation and amortization (EBITDA) reached $68 million on net sales of $264 million in the third quarter of 2000, compared to $50 million on net sales of $249 million for the same period in 1999 and $66 million on net sales of $277 million in the second quarter of 2000.
For complete news Go to http://www.cascades.com/
International Paper Reports 3Q Earnings; Plans 1.2 Million Ton Capacity Closure, Cut 2500 Jobs
PURCHASE, N.Y., Oct. 18 /PRNewswire/ -- International Paper (NYSE: IP) today announced a 15 percent increase over third-quarter 1999 earnings and plans to reduce production capacity by 1.2 million tons annually in the uncoated paper, market pulp, unbleached Kraft paper and containerboard businesses. Three mills will be closed and one scaled back as part of the capacity reduction.
"International Paper's merger and acquisition activities over the past five years have given us the flexibility and low cost capacity that allows us to realign production more efficiently and reduce our higher-cost operations," said company Chairman and CEO John Dillon. "Couple this with our on-going divestiture activities, and the result will be a stronger, more focused, more profitable IP."
For complete news Go to http://www.corporate-ir.net/
Temple-Inland Inc. Reports Third Quarter Earnings
AUSTIN, Texas, Oct. 16 /PRNewswire/ -- Temple-Inland Inc. (NYSE:
TIN - news) today reported third quarter income of $52 million,
or $1.05 per diluted share, before a previously announced after-tax
special charge of $9 million, or $0.18 per diluted share. This
compares with third quarter 1999 income from continuing
operations of $60 million, or $1.07 per diluted share, and second
quarter 2000 income of $62 million, or $1.20
per diluted share.
For complete news Go to http://biz.yahoo.com/
Potlatch Reports Lower Third Quarter Results
Spokane -- Potlatch Corporation (NYSE:PCH) today reported significantly lower earnings for the third quarter of 2000, compared to the third quarter of 1999. The earnings decline was largely due to rapidly deteriorating market conditions for the company's wood products during the quarter, which contrasts sharply with the very favorable conditions during the same period a year ago. The company also recorded an $18.5 million charge in September for costs related to the previously announced closure of a plywood plant in Idaho. The after tax effect of the charge totaled $11.3 million or $.39 per diluted common share. Net earnings for the third quarter of 2000 were $4.4 million or $.15 per diluted common share, before the charge. Including the charge, the company posted a net loss of $6.9 million or $.24 per diluted common share. Third quarter 1999 net earnings were $22.6 million or $.77 per diluted common share. Net sales were $416.8 million, compared with $446.6 million in the third quarter of 1999.
For complete news Go To http://www.potlatchcorp.com
UPM-Kymmene Completes Repap Acquisition
Helsinki, Finland and Stamford, Connecticut, (October 16, 2000) – UPM-Kymmene Corporation (Helsinki Stock Exchange: UPM1V; NYSE: UPM) and Repap Enterprises Inc. (TSE: RPP) announced today that the shareholders of Repap have approved the amalgamation of Repap with a wholly-owned subsidiary of UPM-Kymmene that was previously announced on August 29, 2000. Over 96 percent of Repap shareholders, represented either in person or by proxy, voted in favour of the transaction.
For complete news Go To http://www.upm-kymmene.com/
Boise Cascade Reports Third-Quarter Earnings
BOISE, Idaho, Oct. 13 /PRNewswire/ -- Boise Cascade Corporation (NYSE: BCC) today reported third quarter 2000 net income of $27.4 million, or 40 cents per diluted share, before nonroutine items, compared with $49.0 million, or 74 cents per diluted share, in the third quarter of 1999. Including a pretax gain of $96.1 million, or 93 cents per diluted share, primarily from the sale of our European office products distribution operations, third-quarter net income was $84.6 million, or $1.33 per diluted share. Second quarter 2000 net income was $31.0 million, or 46 cents per diluted share.
For complete news Go To http://www.prnewswire.com/
Perkins Papers Ltd. Extends Tender Offer For Wyant Corporation
Candiac (Quebec) October 13, 2000 -- Perkins Papers Ltd. (TSE, symbol: PKN) announced today that Perkins Acquisition Corp., a wholly-owned subsidiary of Perkins Papers Ltd., is extending its tender offer to acquire all outstanding shares of common stock of Wyant Corporation (NASDAQ Small Cap, symbol: WYNT) to 12:00 midnight, New York City time, on Thursday, October 19, 2000. The tender offer was previously scheduled to expire at 12:00 midnight, New York City time, on Thursday, October 12, 2000.
For Complete news Go To http://207.253.165.188
Newsprint Prices Expected To Rise
NEW YORK (AP) -- Oct. 10, 2000, Newspaper publishers, already confronting slower growth in advertising revenues, are bracing for another increase in newsprint prices next spring.
If an increase goes through, it would be the fourth time in a little more than a year that prices have risen for the industry's most important commodity. Newsprint is typically the second-highest expense for newspaper publishers after labor, accounting for around 20 percent of total costs.
The last three price increases have already raised newsprint from $480 per metric ton last September to about $600 this month, a rise of 25 percent.
For complete news Go To http://biz.yahoo.com
Chesapeake Completes Acquisition of First Carton
Richmond, Va. - Chesapeake Corporation (NYSE:CSK) announced today the completion of its acquisition of First Carton Group Ltd., a leading European packaging supplier. Financial terms of the transaction were not disclosed.
For complete news Go to http://www.shareholder.com/csk
Stora Enso plans to close its Newton Kyme packaging board mill
[Oct. 10, 2000] Stora Enso plans to close down its Newton Kyme mill in the UK during the early part of next year. The mill has an annual capacity of 40,000 tonnes of packaging boards impermeable to fat and moisture mainly based on fluorochemical barriers.
The products of Newton Kyme are no longer commercially viable. Customers will be offered alternative extrusion coated polymer products from other group mills.
For Complete news Go to http://www.storaenso.com
Stora Enso, Aracruz and Odebrecht sign final agreements regarding the Veracel pulp mill project
[Oct. 10, 2000] Representatives of Stora Enso, Aracruz Celulose S.A. and Odebrecht S.A. today signed the final agreements according to which Aracruz will acquire a 45% stake in the Veracel pulp mill project.
Aracruz will pay approximately USD 83 million for the 45% stake in Veracel. Following the transaction, Stora Enso will own 45% and Odebrecht 10% of Veracel. The parties signed a letter of Intent on 6 July 2000 to this effect and have been awaiting the outcome of the due diligence process before finalizing the agreement.
For complete news Go to http://www.storaenso.com/
Crown Vantage Announces Termination of Letter of Intent
CINCINNATI, October 9, 2000 -- Crown Vantage Inc. (OTC Bulletin Board: CVANQ) and its wholly owned subsidiary Crown Paper Co., announced today that the letter of intent dated September 11, 2000, between Crown Acquisition Corporation ("CAC") and Crown Paper has been terminated by CAC. As previously announced, the letter of intent contemplated the sale to CAC of substantially all of the assets of Crown Paper. CAC stated that it terminated the letter of intent because the definitive agreement had not been executed by September 27, 2000, and alleged that certain conditions could not be satisfied by Crown Paper. Despite terminating the letter of intent, CAC has expressed interest in acquiring the St. Francisville mill.
For complete news Go to http://www.crownvantage.com/
International Paper Cuts 350 Jobs
HAMILTON, Ohio (AP) Oct., 06 International Paper Co. plans to close its Knightsbridge administrative complex, eliminating 350 jobs and sending 190 additional jobs elsewhere.
Local officials had been worried about such a move since International Paper acquired rival Champion International Corp. for $9.5 billion in June.
The announcement Thursday still came as a shock to many in the community.
"We were kind of expecting it, but hoping it wouldn't happen,'' said Mel Less, president and chief executive officer of the Greater Hamilton Chamber of Commerce.
For complete news Go to http://biz.yahoo.com
Valmet to rebuild Stora Enso's production line in Oulu
HELSINKI, Finland, Oct. 05, 2000, Valmet, the fiber and paper technology business area of Metso Corporation, will rebuild a papermaking line at Stora Enso Fine Paper's Oulu mill in Finland. The rebuild, valued at nearly EUR 30 million, will be carried out in November 2001. The deal is the fifth significant order concerning the manufacture of coated fine paper received by the fiber and paper technology business area this year.
For complete news Go to http://www.valmet.com/
Bowter to Curtail Market Pulp Production
OCTOBER 4, 2000, Greenville, SC - Bowater Incorporated (NYSE: BOW) announced today that it will curtail production of market pulp during the fourth quarter of 2000 by at least 25,000 metric tons, or approximately 10% of quarterly production capacity, to maintain optimal inventory levels
For complete news Go to http://www.bowater.com/main.html
Metso's Valmet Agree to Broad Cooperation With Albany International
HELSINKI, Finland, Oct. 4 Valmet and Albany International (NYS/PSE: AIN) announced today that they have agreed to a program intended to produce a broad cooperation in technology, sales, marketing and services for the paper industry. The two companies have been engaged in technical cooperation for several years.
For complete news Go to http://www.valmet.com
Mercer International Announces Successful Re-Start of Rosenthal Pulp Mill
ROSENTHAL, Germany--(BUSINESS WIRE)--Oct. 4, 2000--Mercer International Inc. (Nasdaq:MERCS, Easdaq:MERC GR) announced today that it has successfully re-started operations at its Rosenthal pulp mill. As previously announced, the Company undertook a planned 9-day maintenance and modification shutdown at its Rosenthal pulp operation to facilitate the smooth and continuous operation of the mill at its demonstrated above rated capacity level.
For complete news Go to http://www.mercerinternational.com
MONTREAL, October 3 /CNW/ - Norampac is pleased to announce the ground- breaking ceremony today at the new location for its mega box plant on Creditstone Road, in Vaughan, Ontario. Norampac decided to relocate its box plant in Leaside, Ontario to Vaughan because the present site offers no room for additional expansion. The new 400,000-square-feet facility will be a high-performance conversion plant and a model of efficiency, flexibility and quality.
For complete news Go to http://www.newswire.ca
Oct. 02, 2000 Greenville, S.C. Bowater Incorporated
confirmed today that it has signed a preliminary Letter of Intent
with Sepoong Corporation and its major creditor, Chohung Bank, to
acquire the Sepoong paper mill located in Kunsan, South Korea for
US$201 million. The mill has approximately 265,000 metric tons of
recycled newsprint
capacity.
In 1998, Bowater acquired the Halla recycled newsprint mill located in Mokpo, South Korea, which has a similar production capacity.
For complete news Go to http://www.bowater.com
International Paper Agrees to Sell Masonite
CHICAGO, Oct. 2 /PRNewswire/ -- International Paper (NYSE: IP) has reached a definitive agreement to sell its Masonite businesses to Premdor Inc. (TSE: PDI; NYSE: PI) of Toronto, Canada for approximately $523 million, subject to certain adjustments at closing. The transaction is subject to normal closing conditions including U.S. regulatory approval.
For complete news Go to http://investor.internationalpaper.com/
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