Join        Login             Stock Quote

Boise (BZ) 4Q Earnings Drop 16.7 Pct, Miss Estimates

 February 26, 2013 12:00 PM

(By Balaseshan) Boise Inc. (NYSE: BZ), a manufacturer of packaging and paper products, reported a 16.7% decline in quarterly earnings due to higher costs and expenses as well as margin compression in certain Packaging operations and declining prices in its Paper business.

Earnings for the fourth quarter were $13.55 million or $0.13 per share, lower than last year's $16.26 million or $0.15 per share. Excluding special items, earnings per share (EPS) declined to $0.14 from $0.17.

Sales increased to $627.49 million from $600.44 million.

Analysts, on average, polled by Thomson Reuters had expected a profit of $0.19 per share on revenue of $633.77 million for the fourth quarter.

[Related -International Paper (IP) Reaches Deal With DOJ; Positive Catalyst For Industry]

In the previous third quarter, the company posted EPS excluding special items of $0.23 on sales of $645.19 million.

Packaging sales grew 14% to $287.3 million, as a result of its acquisition of Hexacomb on December 1, 2011 as well as sales volume growth in its network of box plants.

Paper sales declined 2% to $352.7 million, due to lower uncoated freesheet sales prices. Average sales price of uncoated freesheet declined to $948 per short ton from $993 per short ton, as industry supply continued to outpace demand.

The company said the decline in average price for uncoated freesheet factored heavily into its decision to cease paper production at its mill in St. Helens, Oregon, reducing its production capacity in 2013 by 60,000 tons.

[Related -Today's Big Gainers: STEC, PUDA, BZ, MTB, OPEN]

"Going forward, we will continue to aggressively manage our costs and evaluate the optimal configuration of our white paper assets, to balance our production with demand for our products," said Alexander Toeldte, president and chief executive officer of Boise.

BZ is trading down 3.73% at $8.26 on Tuesday. The stock has been trading between $6.39 and $9.18 for the past 52 weeks.



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageThoughts on MetLife and AIG

In some ways, this is a boring time in insurance investing.  A lot of companies seem cheap on a book and/or read on...

article imageA 2016 Recession Would Be Different

If the US or the Eurozone entered a recession this year, a few macroeconomic variables would look very read on...

article imageWhat's Next For Chipotle?

After stumbling badly on negative publicity about foodborne illness at some of its restaurants, the fast read on...

article imageHow Fast Can These Stocks Make You A Millionaire?

These days it seems as if the market doesn't know whether it wants to break through fears of higher rates read on...

Popular Articles

Daily Sector Scan
Partner Center

Related Articles:

Trade Plan For Tuesday- Fed Decision Day
More Articles on: Basic Materials

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.