Buckeye Technologies reports higher Q1 profit
Buckeye Technologies Inc. (NYSE: BKI) shares are edging down despite the maker and distributor of cellulose-based products’ announcement before the bell that its first-quarter profit tripled on a tax benefit. The Memphis, Tenn.-based company’s first-quarter profit totaled $13.5 million, or $0.34 per share, above analyst estimates of $0.28 per share and compared with $3.8 million, or $0.10 per share, a year earlier.
Revenue for the quarter ended Sept. 30 rose 3% to $197.4 million, slightly below Wall Street projections of $197.59 million and from $191.4 million a year earlier.
“The earnings improvement is a combination of higher prices, better mix and cost control,” CEO John B. Crowe said in a statement. “Non-wovens shipments were especially strong with net sales up 10% compared to the same period last year. Strong cash flow enabled us to reduce debt by $26 million during the just completed quarter.”
The firm’s selling, general and administrative expense rose to $11.47 million, from $11.2 million in the prior-year period.
In morning trading, BKI shares were down 1.02%, or $0.18, at $17.49. Over the last 52 weeks, shares have ranged from $9.52 to $18.78.
