Wausau Paper down on lower Q3 profit, mill closing
Wausau Paper Corp. (NYSE: WPP) shares are down after the printer and paper manufacturer reported lower third-quarter income and announced a mill closing.
The Mosinee, Wis.-based firm’s third-quarter profit totaled $6.1 million, or $0.12 per share, down from $7.2 million, or $0.14 per share, a year earlier. Quarterly revenue rose to $319.3 million, compared with $306.7 million during the same period of 2006.
“The benefit of market share and operational gains has been muted by fiber cost increases and historically high energy prices,” CEO Thomas Howatt said in a statement. “Nevertheless, we remain confident in our ability to drive long-term profitability through pursuit of our strategic initiatives—niche markets, product development, benchmark customer service, and operational excellence.”
After Tuesday’s close, Wausau Paper said it is closing its Groveton, N.H., paper mill, which will eliminate 300 jobs. The mill is scheduled to close on Dec. 31. Wausau Paper said it expects a $72 million charge as a result of the shutdown. The closure will decrease the firm’s annual printing production by approximately 28%.
The company said it expects fourth-quarter earnings similar to last year’s results, excluding charges related to the mill closure and timberland sales gains.
“Fiber prices continue to rise and signs of economic weakness are emerging as we enter the seasonally weaker fourth quarter,” Howatt said. “Fourth-quarter 2006 results were $0.04 per share, excluding timberland sales gains of $0.10 per share.”
In morning trading, WPP shares are down 3.01%, or $0.31, at $10. Over the last 52 weeks, shares have ranged from $8.56 to $15.60.
