(By Balaseshan) Wausau Paper Corp. (NYSE: WPP), which manufactures paper and paper products, reported a loss from continuing operations due to lower sales as well as higher costs and expenses. Results missed Street's expectations.
"We are also taking the appropriate actions in our Paper segment to explore alternatives for this business and to evaluate our near-term options for our Brainerd operations," said Henry Newell, president and CEO.
Loss from continuing operations for the fourth quarter was $2.33 million or $0.05 per share, compared to a profit of $24.92 million or $0.50 per share last year. Adjusted loss per share was $0.03 versus earnings of $0.05 per share in the previous year quarter.
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Net sales decreased to $190.87 million from $203.03 million.
Analysts, on average, polled by Thomson Reuters had expected a profit of $0.04 per share on revenue of $200.88 million for the fourth quarter.
The Tissue segment achieved 4.0% shipment growth, measured in cases, for the fourth quarter. Adjusted operating profit from the Tissue segment declined to $10.2 million from $10.4 million.
The Paper segment reported a fourth-quarter adjusted operating loss of $6.8 million, compared to a profit of $0.7 million last year.
The company said the Paper segment results reflect deteriorating second-half demand, addressed through market-related downtime, the fourth-quarter shutdown of converting operations at Brainerd as a result of the Paper segment's exit from the Print & Color business, and continued operational issues at Brainerd, which pressured fourth-quarter results.
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WPP is trading down 0.62% at $9.66 on Monday. The stock has been trading between $7.46 and $9.92 for the past 52 weeks.