Cabela's Incorporated today reported strong financial results for fourth quarter fiscal 2012.
For the quarter, adjusted for certain items, total revenue increased 15.2% to $1.133 billion; Retail store revenue increased 26.3% to $663.6 million; Direct revenue increased 1.7% to $385.5 million; and Financial Services revenue increased 7.2% to $83.2 million. For the quarter, comparable store sales increased 12.0%. During the quarter, the Company recognized a $12.5 million revenue reduction in its Financial Services business related to the previously disclosed Visa antitrust settlement. On a reported basis, total revenue increased 13.9% and Financial Services revenue decreased 8.9%. A detailed reconciliation and explanation regarding the Visa antitrust settlement is provided later in this release.
For the quarter, net income increased 19.7% to $89.8 million compared to $75.0 million in the year ago quarter, and earnings per diluted share were $1.25 compared to $1.06 in the year ago quarter, each adjusted for certain items. The Company reported GAAP net income of $68.0 million and earnings per diluted share of $0.95 as compared to GAAP net income of $69.8 million and earnings per diluted share of $0.99 in the year ago quarter. Fourth quarter 2012 GAAP results include impairment charges of $20.3 million primarily related to land held for sale and a $12.5 million revenue reduction related to the Visa antitrust settlement. Fourth quarter 2011 GAAP results include impairment charges of $7.8 million mostly related to the value of economic development bonds. See the supporting schedules to this earnings release labeled "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of the GAAP to non-GAAP financial measures.
For fiscal 2012, net income increased 29.5% to $195.3 million compared to $150.8 million last year, and earnings per diluted share were $2.72 compared to $2.12 a year ago, each excluding certain items. The Company reported GAAP net income of $173.5 million and earnings per diluted share of $2.42 as compared to GAAP net income of $142.6 million and earnings per diluted share of $2.00 a year ago. Fiscal 2012 GAAP results include impairment charges of $20.3 million primarily related to land held for sale and a $12.5 million revenue reduction related to the Visa antitrust settlement. Fiscal year 2011 results include impairment and restructuring charges of $12.2 million. See the supporting schedules to this earnings release labeled "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of the GAAP to non-GAAP financial measures.
Sappi is to increase prices for the second time in three months with a five to seven per cent increase to be implemented across its coated fine paper grades from April.
The paper manufacturer announced that it was to implement similar price hikes across its graphic papers range in January, which came into effect this month.
However, it claimed a fall in its coated paper prices in the final months of 2012 and continuing rises in input costs have forced the company to propose a further increase to be in place as of 1 April to counteract the current "unsustainably low" prices.
This impacts all the products in the graphic papers range except the uncoated Tauro sheets and reels.
Sappi said that the first price increase of 2013 had "by no means reached accepted levels" of profitability in the face of rising transport, pulp and energy costs, which had "entirely outstripped" the price changes and cost reductions the company had put in place.
Sonoco, one of the largest diversified global packaging companies, today reported financial results for its fourth quarter and full-year 2012.
Fourth Quarter Highlights
•Fourth quarter 2012 GAAP earnings per diluted share were $.42, compared with $.29 in 2011.
•Fourth quarter 2012 net sales were a record $1.18 billion, up 4 percent, compared with $1.13 billion in 2011.
•Full-year 2012 GAAP earnings per diluted share were $1.91, compared with $2.13 in 2011.
•Net sales reached a record $4.79 billion, up 6 percent, compared with $4.50 billion in 2011.
Commenting on the Company's fourth quarter results, Chairman and Chief Executive Officer Harris E. DeLoach Jr. said, "Base earnings increased 21 percent over last year's fourth quarter while gross profit improved 10 percent and base earnings before interest and taxes (EBIT) gained 7 percent. A lower effective tax rate drove a significant part of the base earnings improvement. The improvement in base EBIT stemmed from much stronger productivity, the addition of Tegrant and modest volume gains. These favorable factors were partially offset by a slightly negative price/cost relationship and higher maintenance, labor, pension, interest and other expenses.
"Operating profits from our Paper and Industrial Converted Products segment rose 23 percent in the fourth quarter as the segment generated its strongest fourth quarter earnings performance since 2007. The segment's improvement was due to higher volume and strong productivity gains. Tons produced in the Company's North America paperboard mills increased 7 percent with less downtime that aided productivity and helped offset a negative price/cost relationship stemming from rising recovered paper prices.
"Our Protective Solutions segment reported an 82 percent year-over-year improvement in operating profits during the fourth quarter driven largely by last year's addition of Tegrant.
The end of 2012 didn’t bring any relief for the embattled newspaper industry on the advertising front, judging by early earnings announcements. This week A.H. Belo, the publisher of theDallas Morning News, revealed that total revenues decreased 6% from around $125 million in the fourth quarter of 2011 to $117 million in the fourth quarter of 2012.
The decrease was due to declining ad revenues, which fell 10%, including a 19% drop in display revenue, to $23.4 million, a 3% drop in preprint revenue and a 13% drop in classifieds revenue, to $13 million.
A modest increase in digital revenue, up 4% to $9 million, wasn’t enough to offset losses on the print side. Circulation revenue in the fourth quarter was $34 million, down 4% from around $35 million in the same period in 2011.
For the full year, A.H. Belo’s total revenues dropped 5% from around $463 million in 2011 to $440 million in 2012. Full-year display revenue was down 15% to $84.6 million, while preprint dipped 3% to $84.8 million, and classifieds fell 11% to $54.1 million. Digital revenue was down 1% to $34.7 million. For the full year, circulation revenue was $136.5 million, down 2% from around $139.3 million in 2011.
Gannett Co. fared significantly better in 2012, thanks, in large part, to the introduction of online paywalls at its community newspapers. Gannett’s total circulation revenues jumped 16.8% from $268 million in the fourth quarter of 2011 to $313 million in the fourth quarter of 2012, pushing publishing division revenues up 3.7% from $1.01 billion to $1.04 billion over the same period.
However, Gannett advertising revenues slipped 2% from $671 million to $658 million.
West Texas Intermediate traded near the highest level in more than a week. U.S. crude stockpiles declined for the first time this year, according to the American Petroleum Institute.
Futures were little changed in New York after climbing 0.5 percent yesterday. Crude inventories fell 2.3 million barrels last week, the first drop in six weeks, data from the industry- funded API showed yesterday. An Energy Department report today may show supplies rose, according to a Bloomberg News survey. The International Energy Agency trimmed forecasts for global oil demand because of constrained economic expansion.
“Declining inventory levels in the U.S.” are supporting prices, said Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt. “If the U.S. Energy Department reports a similar fall in stocks, oil prices are likely to climb further.”
Crude for March delivery was at $97.62 a barrel in electronic trading on the New York Mercantile Exchange, up 11 cents, at 10:36 a.m. London time. The contract rose 48 cents to $97.51 yesterday, the highest close since Feb 1.
West Texas Intermediate traded near the highest level in more than a week after the biggest gain since early January. OPEC raised forecasts for the amount of crude it will need to supply this year.
Futures were little changed, paring an earlier loss as the dollar weakened against the euro after the world’s major industrial nations pledged to avoid devaluing their exchange rates. U.S. crude inventories probably rose 2.35 million barrels last week, according to the survey before an Energy Department report tomorrow. North Sea Brent crude’s premium to WTI widened.
“Prices would need much more momentum from the economic growth side to go higher,” said Gerrit Zambo, an oil trader at Bayerische Landesbank in Munich, who predicts Brent will trade from $115 to $120 a barrel this month.
WTI for March delivery was 27 cents higher at $97.30 a barrel in electronic trading on the New York Mercantile Exchange as of 11:46 a.m. London time.
Wausau Paper today reported fourth-quarter and full-year results for 2012.
2012 EXECUTIVE SUMMARY
• Achieved the safest year in the Company’s history.
• Full-year 2012 adjusted net earnings were $10.8 million versus $16.1 million a year ago.
• Fourth-quarter 2012 adjusted net loss was $1.5 million compared to net earnings of $2.5 million for the prior year period.
• On January 11, 2013, announced intent to strategically reposition the Company to focus on the Tissue business and explore alternatives for Paper segment.
•Tissue Segment. • Grew Tissue case volume 3.3 percent, with 4.0 percent growth in the fourth quarter.
• Invested $220 million in new tissue machine in Kentucky; started production in December; business poised to deliver significant returns in 2013.
•Paper Segment. • Realized technical specialty full-year shipment growth of 4.5 percent in a deteriorating demand environment.
• Experienced margin pressure in Paper segment due to operational challenges at Brainerd, Minnesota.
• Exited the Print & Color business, including sale of premium brands and closure and sale of the Brokaw, Wisconsin, manufacturing site, delivering $52 million in cash versus the targeted $20 million.
• Managed year-end debt to $196 million reflecting strong cash generation and balance sheet management.
The McGraw-Hill Companies today reported fourth quarter and full-year 2012 results. Because of the pending sale of McGraw-Hill Education, this business has been reclassified as a discontinued operation and its results are excluded from continuing operations. In addition, in anticipation of the formation of McGraw Hill Financial and the first full year of operation of the S&P Dow Jones Indices joint venture, the Company is reporting S&P Capital IQ and S&P Dow Jones Indices as distinct business segments beginning this quarter.
McGraw Hill Financial: The Company reported fourth quarter 2012 revenue of $1,226 million, an increase of 22% compared to the same period last year. Net income and diluted earnings per share from continuing operations were $190 million and $0.67, respectively. For the full year, revenue increased 13% to $4,450 million and net income and diluted earnings per share from continuing operations were $676 million and $2.37, respectively.
Excluding the impact of one-time costs related to the Growth and Value Plan, and a gain from modifications to the vacation policy, adjusted net income from continuing operations increased 52% to $205 million, and adjusted diluted earnings per share from continuing operations increased 56% to $0.72. For the full year, adjusted net income from continuing operations increased 24% to $783 million and adjusted diluted earnings per share from continuing operations increased 32% to $2.75.
The North American PEFC member Sustainable Forestry Initiative® (SFI®) announced last week that it will deliver up to $400,000 in 2013 to support research into responsible forestry practices through the SFI Conservation and Community Partnerships Grant Program.
Since 2010, SFI has awarded 33 grants totaling more than $1.32 million to support projects that promote sustainable forestry practices and engage communities. When leveraged with project partner contributions, that total investment exceeds $4.8 million.
"The decisions we make today regarding research investments and partnerships will better inform our future understanding of how working forests can continue to provide jobs, forest products and a variety of conservation services and benefits," said Kathy Abusow, President & CEO of SFI Inc.
Up to $250,000 is to be awarded to new grants in 2013, which will bring SFI's total investment in conservation and community grants in 2013 to $400,000. This amount includes ongoing multi-year research grant commitments for projects awarded to groups like Ducks Unlimited Canada and the World Resources Institute. Ducks Unlimited Canada's grant supports developing and testing best management practices for forestry roads on SFI program participant managed lands that serve to protect wetland ecosystems in the Western Boreal Forest. Results to date include the construction of five innovative wetland crossing sites that are monitored for project effectiveness. A sixth wetland crossing is planned for 2013.
The Authors Guild is asking a federal appellate court to allow longstanding litigation about Google's book project to proceed as a class-action.
The authors group argues that U.S. Circuit Court Judge Denny Chin correctly rejected Google's contention that copyright infringement requires case-by-case evaluation. "It is duplicitous for Google to implement a single, mass digitization policy affecting the rights of so many authors while at the same time argue that its policy must be analyzed in countless separate lawsuits," the Authors Guild says in a brief filed late last week with the Second Circuit Court of Appeals.
Last year, Circuit Court Judge Chin in New York certified the Authors Guild's lawsuit as a class-action. Chin ruled that it wouldn't be fair to require writers to sue Google individually.
Google is appealing that decision to the 2nd Circuit, which stayed the litigation when it considers the issue. Google argues that a class-action isn't appropriate because the Authors Guild and its members have conflicting interests. Google says that many writers approve of its decision to scan millions of books from public libraries and make them searchable.
The company says a survey it commissioned of 800 authors shows that most like the digitization project. Most survey respondents -- 58% -- said they approved of Google scanning their books, while 19% say they have or would benefit from Google's scans.
But the Authors Guild calls that survey "invalid and misleading" in its new court papers.
The Newspaper Association of America is showing its legal teeth with a lawsuit filed against the Postal Regulatory Commission on behalf of its members, disputing the legality of a deal struck between the U.S. Postal Service and Valassis Direct Mail.
The lawsuit, filed in the U.S. Court of Appeals for the District of Columbia Circuit, contends that the PRC erred in concluding that the USPS deal did not constitute an “unreasonable harm to the marketplace.”
The NAA claims that the negotiated service agreement between USPS and Valassis, which charges Valassis a lower “special contract rate” for direct mailings, gives the latter an unfair advantage over competitors, including newspaper publishers, in fields like retail advertising.
Specifically, the NAA believes it creates a price inventive for advertising clients to stop paying for advertising inserts in newspapers and deliver them via direct mail instead.
FiberMark, a manufacturer of specialty cellulose and synthetic fiber-based printing media, reached an agreement with ND Graphics naming them as the Exclusive FiberMark Value-Added Master Distributor of Wide-Format Inkjet Products in Canada.
“We’ve recognized for a long time that we need to offer a greener alternative to traditional wide format print media. With FiberMark, we have finally found a manufacturer to partner with that offers indoor and outdoor capable products that are both competitively priced and better for the environment,” said Mark West, President, ND Graphics, Inc.
"With nine stocking locations, wide-format inkjet knowledgeable sales staff, technical support, the latest relevant printing news, and educational marketing, ND Graphics adds a tremendous amount of value for their customers," said David Sailer, Business Development Manager - Print Media, FiberMark. "The digital print media team at FiberMark is excited and ready to support ND Graphics in their efforts."
Berry Plastics Group, Inc., a leading global manufacturer and marketer of value-added plastic packaging and engineered materials, today introduced 3546A single-coated woven tape. 3546A joins Berry's extensive offering of woven, flexible film, and transfer adhesives used in the manufacture of pulse oximeters and other medical devices.
?Stretchable, breathable woven adhesive tape
?Designed for high speed converting
?Strong adhesive, bonds without lifting or flagging
Featuring a 25 mil stretchable woven fabric backing and white rubber-based medical-grade adhesive, 3546A is designed with both OEM/Converters and patients in mind.
OfficeMax® Incorporated, a leader in office and facility supplies, technology and services, today announced that it will receive approximately $129 million in cash proceeds on February 12, 2013 related to its October 2004 investment in Boise Cascade Holdings, L.L.C. ("BCH"). Since 2004, OfficeMax has held two classes of securities in BCH, non-voting equity securities ("Series A Units") and voting equity securities ("Series B Units").
BCH will redeem all of the Series A Units held by OfficeMax for $112 million, equal to the original investment amount of $66 million plus $46 million of total accrued dividends. As previously disclosed, OfficeMax had been recording income earned from the 8% annual dividend yield on the Series A Units as a reduction of operating, selling and general and administrative expenses in its Corporate & Other segment. This dividend income will cease upon completion of the redemption of the Series A Units on February 12, 2013.
OfficeMax also continues to hold a 20.4% ownership interest in the Series B Units of BCH, which do not accrue any dividend. OfficeMax has accounted for the Series B Units under the cost method as a $109 million investment on its consolidated balance sheet since October 2004. BCH has declared a distribution of approximately $85 million payable on February 12, 2013 to the holders of its Series B Units, of which OfficeMax's share of proceeds is approximately $17 million. This distribution on the Series B Units will be recognized as income by OfficeMax and will not reduce the $109 million investment amount.
Resolute Forest Products Inc. reported a net loss of $2 million for the year ended December 31, 2012, or $0.02 per share, on sales of $4.5 billion. This compares with net income of $41 million, or $0.42 per diluted share, on sales of $4.8 billion in the year ended December 31, 2011. Net loss in the fourth quarter of 2012 was $36 million, or $0.38 per share, on sales of $1.1 billion, compared with a net loss of $6 million, or $0.06 per share, on sales of $1.1 billion in the fourth quarter of 2011.
Excluding $81 million of special items, net income for the full year was $79 million, or $0.81 per diluted share. Excluding special items of $70 million, net income in the fourth quarter was $34 million, or $0.35 per diluted share. For the full year 2011, net income excluding special items was $166 million, or $1.71 per diluted share, and $45 million, or $0.46 per diluted share, in the fourth quarter 2011. All special items and non-GAAP financial measures, such as adjustments for special items and adjusted EBITDA, are described and reconciled below.
"We significantly improved the Company's competitiveness by optimizing our asset base, reducing costs wherever possible and strengthening our financial position this year," said Richard Garneau, president and chief executive officer. "We added pulp assets, committed to growth projects in lumber, invested in power cogeneration plants and further optimized our paper assets, steps that will position us well for the future. At the same time, we returned $67 million to our shareholders in share buybacks, reduced balance sheet working capital by a further $81 million from the end of 2011 and redeemed an additional $85 million of debt."
The Company recorded an operating loss of $30 million in 2012, compared to operating income of $198 million in 2011. This reflects a $134 million increase in closure costs, impairment and other related charges, and $173 million of lower volume, in both cases because of additional market downtime and the Company's ongoing efforts to focus production in its most cost-effective mills and drive better efficiency by restructuring and reducing labor costs. As a result, and in addition to lower energy, recovered paper and fiber costs, manufacturing costs improved by $55 million, excluding the effects of lower volume. The effect of pricing changes in the year was neutral as the increase in lumber pricing offset declines in pulp, while gains in specialty paper offset declines in newsprint and coated papers.
Grainger today reported sales results for the month of January 2013. Daily sales increased 8 percent versus January 2012, and included 3 percentage points from volume, 3 percentage points from price, 1 percentage point from sales of seasonal products and 1 percentage point from acquisitions. The month of January 2013 had 22 selling days versus 21 selling days in January 2012. The 2013 first quarter will have 63 selling days, one less than the 64 selling days in the 2012 first quarter.
The average price for regular gasoline at U.S. pumps rose 24.75 cents a gallon in the past two weeks to $3.5918 a gallon, according to Lundberg Survey Inc.
The survey covers the period ended Feb. 8 and is based on information obtained from about 2,500 stations by the Camarillo, California-based company. The average is up 8.17 cents from a year earlier. It was the biggest jump since the two weeks ended March 4, 2011.
“Now that wholesale price hikes have accelerated, retailers will not be able to delay much further before passing through these hikes to consumers,” Trilby Lundberg, president of Lundberg Survey, said yesterday in a telephone interview. “That’s enough reason for us to expect a few more pennies at the pump even if crude oil prices do not rise.”
West Texas Intermediate crude on the New York Mercantile Exchange fell 16 cents to $95.72 a barrel in the two weeks to Feb. 8.
Crude inventories rose 2.62 million barrels in the week ended Feb. 1 to 371.7 million, according to data from the Energy Information Administration. Supplies at Cushing, the delivery point for the Nymex futures contract, dropped 0.6 percent to 51.4 million barrels. Refineries ran at 84.2 percent of capacity.
The U.S. Postal Service ended the first three months of its 2013 fiscal year (Oct. 1 – Dec. 31, 2012) with a net loss of $1.3 billion. Continued growth in Shipping and Package revenue (+4.7%) and increased efficiency helped mitigate but could not fully offset the financial effects of continued First-Class Mail volume declines and costs that are beyond Postal Service management control. As a result, the Postal Service recently announced it would move forward with accelerated cost-cutting actions necessary to help maintain liquidity because Congress has not passed comprehensive postal reform legislation.
The first quarter is traditionally the Postal Service’s strongest financial quarter, mainly due to the holiday mailing and shipping season. The Quarter One results were also aided by growth in Standard (advertising) Mail during the months leading up to the election. The holiday season resulted in a strong increase in competitive package volume as customers took advantage of Postal Service Priority Mail flat rate pricing and increasingly turned to the Postal Service for last-mile delivery.
“The encouraging results from our holiday mailing season cannot sustain us as we move deeper into the current fiscal year and face continuing financial challenges,” said Postmaster General and CEO Patrick Donahoe. “By moving forward with the accelerated cost-cutting actions directed by our Board of Governors, we will continue to become more efficient and come closer to achieving long-term financial stability. We urgently need Congress to do its part and pass legislation that allows us to better manage our costs and gives us the commercial flexibility needed to operate more like a business does. This will help ensure the future success of the Postal Service and the mailing industry it supports.”
One of the accelerated actions, announced earlier this week, is the transition to a new delivery schedule during the week of Aug. 5, 2013. Packages will be delivered Monday through Saturday and mail will be delivered Monday through Friday, resulting in an annual cost savings of approximately $2 billion once the new delivery plan is fully implemented.
In a proposed settlement disclosed Friday night, Macmillan has agreed to pay up to $20 million to settle a consumer class action case, led by Seattle-based firm Hagens Berman, over alleged e-book price-fixing.
The settlement must still be approved by the court, but the announcement suggests that the two-year-old legal drama over e-book pricing may finally be drawing down for the accused publishers: all five have now settled with the U.S. Department of Justice, and as PW reported, on Friday morning Judge Denise Cote gave final approval to a $70-plus million state settlement after a 15-minute hearing. The consumer class action is the third, and final, hurdle. Apple, however, remains on track for a June trial.
According to a spokesperson for Hagens Berman, the class action case continues against Penguin and Apple. Although no specific consumer class action settlement was announced with Hachette, HarperCollins, and S&S, those firms' initial settlement with states’ attorneys to reimburse consumers for allegedly inflated e-book prices likely mooted the class action case.
In a statement, Steve Berman, managing partner ofHagens Berman and lead counsel for the proposed class of consumers, suggested he worked "alongside" 33 states attorneys general and the DoJ to “present a unified front in dealing with Macmillan.”
The deal with Macmillan adds an additional $20 million to the pot of money that will be used to reimburse e-book purchasers allegedly wronged by price-fixing. In the state settlement, Hachette has agreed to pay $31,711,425; HarperCollins, $19,575,246; and Simon & Schuster, $17,752,480. Other fees and costs take the initial value of the state settlement over $70 million.
The National Retail Federation expressed disappointment on Friday over the failure of the International Longshore and Warehouse Union's Local 63 Office Clerical Unit and the Harbor Employers Association to reach a contract agreement.
An eight-day strike in November and December 2012 shut down most terminals at the Ports of Los Angeles and Long Beach before the parties agreed on a tentative new contract with the help of a federal mediator. But union members on Wednesday voted down the contract.
“We are extremely disappointed by this vote and strongly urge the parties to work through their differences without any kind of disruption. Ratification of a contract is needed to give retailers and other industries that rely on these ports the predictability they need to make long-term plans and get back to growing their businesses and creating jobs. The shutdown during the holiday shopping season was more than just a fight between labor and management – it threatened to impact consumers’ shopping plans at the most crucial time of the year. We can’t afford to see another shutdown. As labor and management work to resolve this situation, uninterrupted operation of the ports should be their top priority. Too many jobs across the country depend on these ports to let any interference with operations be considered an acceptable way of doing business,” said NRF VP supply chain and customs policy Jonathan Gold in a prepared statement.
Newspapers and magazines may find the tablet a saving grace with older readers.
They have an easier time reading text on tablet computers than print on paper, according to a new study by German researchers -- which may speed adoption by older consumers who enjoy daily news reads, provided that consumer electronics marketers can alter habits.
Researchers at Johannes Gutenberg University in Mainz, Germany studied the amount of cognitive effort required to read text displayed on different media, including paper, e-readers and tablet computers. After dividing participants into two groups, one consisting of 36 subjects ages 21-34, the other of 21 subjects ages 60+, the researchers tracked eye movements and brain activity with electrodes to determine how much neural power was required to read text presented in the various formats.
The older readers displayed a lower level of brain activity when reading text on an iPad tablet, the study found, and finished each page of text three to four seconds faster, on average. The researchers attributed this result to the tablet computers’ bright, backlit screens, which enhance contrast and make it easier to distinguish text.
Younger readers showed no appreciable differences in the amount of time or mental effort required to read a page of text, regardless of format.
Over 2012 Ilim Group’s mills in Siberia and in the Northwest of Russia manufactured more than 2,580,000 tons of pulp and paper products.
The figures include 1,639,000 tons of market pulp, 2% more as compared to the previous year.
Market containerboard output remained flat as compared to 2011 and reached 708,000 tons.
Paper production increased by 5% and reached 235,000 tons.
Corrugated board production of OAO Ilim Gofra totaled 129,526,000 m2, going up by 6% as compared to 2011.
Tronox Limited announced today that it expects to report fourth-quarter 2012 revenue of $482 million and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately $70 million, which is below previous guidance, due to the combined effect of three scheduled ore shipments in the quarter that were either delayed or cancelled by customers and a $9.6 million lower of cost or market (LCM) inventory write-down. One of the delayed shipments constituting 10,000 metric tons of chloride slag was shipped on January 7, 2013. In addition, while zircon sales volumes were approximately as forecast, zircon prices in the fourth quarter were roughly 12 percent below forecast.
For the first time since 2005, fourth-quarter pigment sales volumes were higher than those of the preceding third quarter. The sequential difference was only 1,429 metric tons, but the company views this increase in what is normally a seasonally affected lower quarter as a positive sign. Nevertheless, because prices declined 10.7 percent sequentially, which was more than the company had forecast, adjusted EBITDA from pigment sales was approximately $10 million less than forecasted.
The aggregate EBITDA effect of the missed mineral sands shipments, the zircon pricing, the LCM charge, and the pigment shortfall was partially offset by operating cost savings achieved across all business units.
Tronox had a cash balance of $716 million at year-end 2012.
The Washington Post Company announced today that it has signed an agreement to sell The Herald, a daily and Sunday newspaper headquartered in Everett, WA, La Raza, and its other print and online products to Black Press Ltd. and its subsidiary Sound Publishing. The transaction is expected to close in early March 2013.
Sound Publishing is the largest community media organization in Washington State, with 39 newspaper titles and a combined circulation of 732,700. The company prints all of its own newspapers and numerous other publications at a centrally located, state-of-the-art printing facility in Everett, WA. Sound Publishing is a subsidiary of Black Press Ltd., headquartered in Victoria, BC, Canada. Founded in 1975, Black Press publishes more than 170 newspapers and other publications in British Columbia, Alberta and Washington State, as well as the Honolulu (Hawaii) Star-Advertiser and Akron (Ohio) Beacon-Journal daily newspapers. It is administered and majority owned by David Holmes Black of Victoria, BC.
While print magazines continue to decline in circulation, the number of digital magazine copies sold has more than doubled since the second half of 2011, according to the latest AAM semiannual Snapshot (formerly known as FAS-FAX) report for U.S. consumer magazines. The Alliance for Audited Media (which was previously known as the Audit Bureau of Circulation) reports that for the second half of 2012, 289 magazines reported more than 7.9 million digital replica editions.
Nearly 65 percent of magazines that filed this period claimed digital replica editions as part of their total circulation. However, while the growth in digital circulation is promising, digital replica editions still comprise only 2.4 percent of the industry's overall circulation?up from 1 percent this time last year, when 245 magazines reported approximately 3.2 million digital replica copies.
The top 25 magazines in print circulation remained almost identical to last year's list. ESPN the Magazine is the only newcomer, supplanting Smithsonian in the number 25 spot. The same 10 magazines populate the top ten spots, though a few have shifted positions: Game Informer Magazine swapped spots with Better Homes and Gardens to take the number three spot and Family Circle moved up two spots, to number 7 while National Geographic dropped two.
While magazine publishers are aggressively expanding their digital content and hawking digital subscriptions, digital circulation remains a small proportion of total circulation, according to the Alliance for Audited Media.
In the six-month period ending December 2012, the 289 American magazines tracked by AAM had a total digital circulation (defined as digital replica editions) of 7.9 million, equal to around 2.4% of the overall combined print and digital circulation of 329.2 million. The digital circ proportion is up from 1.7% in the first half of 2012, indicating that digital circ is growing rapidly, albeit on a small base.
According to AAM, the magazine boasting the biggest digital circulation is Game Informer, with 2,305,816 digital replica editions. Next up is Maxim, with digital circ of 259,529, followed by Cosmopolitan, with digital circ of 254,751. National Geographic came fourth with digital circ of 160,077, while fifth place went to Poder Hispanic, with 149,838. Reader’s Digest had a digital circ of 147,149, and Taste of Home 103,961.
MeadWestvaco Corporation, a global leader in packaging and packaging solutions, announced today the expansion of its pharmaceutical manufacturing Centre of Excellence, based in Hemer, Germany.
The Centre is the core for MWV’s global pharmaceutical dispensing systems manufacturing network. The $7.5 million project includes expanding clean room molding and assembly capacity and the introduction of a state of the art logistics system to control the flow of finished goods and components. MWV is making this investment in its Healthcare business based upon the business’s rapid growth, especially in the Preservative-Free packaging market.
"This investment underlines MWV’s position as an innovation leader in healthcare dispensing systems and our commitment to manufacturing high quality products in the appropriate regulatory environment,” said Sven-Uwe Höhm, vice president & general manager, Medical Plastics Division.
Over 2012, Ilim Group’s Bratsk and Ust-Ilimsk Mills (Irkutsk Oblast) manufactured over 1,480,000 tons of pulp and paper products. As compared to the last year production output remained nearly flat.
The figures include 1,258,000 tons of market pulp. Market containerboard production amounted to 222,000 tons.
Logging volumes of OJSC Ilim Group in Siberia reached 6.7 million m3 at the year-end 2012.
Glatfelter today reported 2012 full year adjusted earnings per diluted share of $1.25 (GAAP $1.36) compared with $1.01 per diluted share in 2011 (GAAP $0.93). For the 2012 fourth quarter Glatfelter reported adjusted earnings of $11.2 million, or $0.26 per diluted share, compared with $14.2 million, or $0.32 per diluted share, in the 2011 fourth quarter. On a GAAP basis, fourth quarter 2012 net income totaled $7.0 million, or $0.16 per diluted share, compared with $9.7 million, or $0.22 per diluted share, in the fourth quarter of 2011. The fourth quarter 2012 results were adversely impacted by costs related to strategic initiatives and a trial in December for the Fox River matter, a higher tax rate, and the impact of weaker economic conditions in Europe, each in nearly equal proportions.
Consolidated net sales in the fourth quarter of 2012 totaled $391.4 million compared with $391.9 million in the fourth quarter of 2011, however unfavorable foreign currency translation of $3.8 million adversely impacted the comparison. On a constant currency basis, net sales were slightly higher.
AmericanStyle, a consumer quarterly founded in 1994, has announced that it will suspend publication immediately in a letter to subscribers.
The small Baltimore-based magazine, published by The Rosen Group, serves the fine arts and crafts collectors market, and had a circulation of 75,000 just three years ago.
Over that time, staff has gone from six full-time to two; frequency from six-per-year to quarterly; the book from 120 pages to 64 in its last issue; ad pages from 50 or 60 to 31. Editor-in-chief Hope Daniels confirms the distribution base is "less" currently, but wouldn't go further, citing ongoing negotiations with potential buyers.
Daniels says those cuts-and others, including folio binding changes and furlough weeks-weren't enough as the company tried to whether the financial storm.
"When people need to meet their bills, pay their rent, feed their families, put gas in their car, luxury items take the hit," she says.
AmericanStyle is being considered for purchase or partnership by at least two publishing companies, according to Daniels.
AAA Fuel Gage 2/08/13
National Unleaded Regular:
Current Average - $3.567/gallon
Month Ago Average - $3.304/gallon
Year Ago Average - $3.488/gallon
Highest Recorded Average - $4.114/gallon on 7/17/08
Current Average - $4.019/gallon
Month Ago Average - $3.910/gallon
Year Ago Average - $3.897/gallon
Highest Recorded Average - $4.845/gallon on 7/17/08
Current Exchange Rates as of 2/08/13
American Dollar to Canadian Dollar = 1.001920
American Dollar to Chinese Yuan = 0.160378
American Dollar to Euro = 1.341389
American Dollar to Japanese Yen = 0.010817
American Dollar to Mexican Peso = 0.078596
Brent crude, headed for a fourth weekly advance, climbed to a nine-month high in London after stronger-than-expected trade data from China, the world’s second-biggest user.
Futures rose to more than $118 a barrel for the first time since May 3, boosting their premium to West Texas Intermediate for an eighth day to the most in almost two months. China’s exports climbed 25 percent in January from a year earlier and crude imports increased to the highest level in eight months, customs figures showed. Oil markets will “remain tight” in the first quarter and may push prices above its forecasts, Goldman Sachs Group Inc. said.
“The numbers out of China are good,” said Nic Brown, head of commodity research at Natixis SA in London, who forecasts that Brent will average $107.40 this year. “China appears to be significantly stronger than even we were expecting. This is a clear upside risk for oil prices.”
Brent for March settlement advanced as much as $1.17, or 1 percent, to $118.41 a barrel on the London-based ICE Futures Europe exchange and was at $118.26 at 11:51 a.m. local time.
Fourth quarter 2012
Net sales amounted to SEK 3 068 million, compared with SEK 2 628 million in the previous quarter. The increase was due to the Korsnäs acquisition.
Operating profit totalled SEK 25 million. The decline of SEK 136 million from the preceding quarter is mainly attributable to non-recurring and seasonal factors.
Results for the quarter were charged with non-recurring costs of SEK 102 million. Adjusted to reflect these non-recurring costs, operating profit totalled SEK 127 million.
Prices in local currency for packaging materials were improved by just below 2% than in the previous quarter due to implementation of earlier announced price increases.
The acquisition of Korsnäs was completed on 29 November 2012 and a preferential rights issue valued at approximately SEK 2 billion was carried out.
Full year 2012 compared with the same period in 2011
Net sales amounted to SEK 10 427 million, a rise of 12%.
Operating profit fell to SEK 489 million, mainly as a result of lower prices in local currency and a less favourable currency situation.
In all, non-recurring costs amounted to SEK 170 million (10).
AptarGroup, Inc. today reported fourth quarter and annual results. The Company also updated the status of its previously announced plan to optimize certain European operations.
Fourth Quarter 2012 Summary
•Reported sales increased 5% (core sales increased 2% excluding currency and acquisition effects)
•Growth in the beauty, personal care, and beverage markets offset the anticipated softness in the generic allergy treatment market
•Latin America and Asia sales growth remained strong
•Reported earnings per share of $0.52 included the negative impact of $0.05 per share from charges related to the European Operations Optimization plan
Stein Mart, Inc. today reported sales for the five weeks of January. The January period includes an extra week in fiscal 2012, creating a 53-week fiscal year that occurs approximately every six years in the accounting cycle for most retail companies.
Total sales for the five-week period ended February 2, 2013 were $78.9 million, an increase of 31.3 percent over total sales of $60.1 million for the four-week period ended January 28, 2012. Total sales for the extra 53rd week were approximately $15.8 million. Comparable store sales for the four-week period ended January 26, 2013 increased 4.6 percent over the four-week period ended January 28, 2012.
For the 14-week period ended February 2, 2013, total sales were $365.2 million, an increase of 11.3 percent over total sales of $328.2 million for the 13-week period ended January 28, 2012. Comparable store sales for the 13-week period ended January 26, 2013 increased 6.0 percent over the 13-week period ended January 28, 2012.
Total sales for the 53-week period ended February 2, 2013 were $1.214 billion, an increase of 4.6 percent over total sales of $1.160 billion for the 52-week period ended January 28, 2012. Comparable store sales for the 52-week period ended January 26, 2013 increased 2.7 percent over the 52-week period ended January 28, 2012.
Gap Inc. today reported that January 2013 net sales for the five-week period ended February 2, 2013 were $1.13 billion compared with net sales of $833 million for the four-week period ended January 28, 2012. The company’s comparable sales for January 2013 were up 8 percent compared with a 4 percent decrease for January 2012.
In addition, the company reported that net sales for the fourth quarter of fiscal year 2012, which ended February 2, 2013, were $4.73 billion compared with $4.28 billion for the fourth quarter last year. The company’s comparable sales for the fourth quarter of fiscal year 2012 were up 5 percent compared with a 4 percent decrease in the fourth quarter last year.
The company noted that fiscal year 2012 had 53 weeks versus 52 weeks in fiscal year 2011. As a result, net sales for January 2013, the fourth quarter of fiscal year 2012, and fiscal year 2012 include the additional week, while comparable sales exclude the 53rd week.
The McClatchy Company today reported a net loss in the fourth quarter of 2012 of $30.0 million or 35 cents per share, including a $60.0 million after-tax loss on debt refinancing. In the fourth quarter of 2011 the company reported net income of $42.0 million or 49 cents per diluted share.
The company's fiscal 2012 reporting period is a 53-week year compared to a 52-week year in 2011, and as a result, the fiscal fourth quarter of 2012 includes 14 weeks compared to 13 weeks in the 2011 fiscal fourth quarter. The company estimates that the reported net loss in 2012 was reduced by approximately $4.0 million because of the additional week being reported.
Revenues in the fourth quarter of 2012 were $355.7 million, up 1.2% from the fourth quarter of 2011. On a 13-week basis, fourth quarter total revenues were an estimated $333.0 million, down 5.3% compared to fourth quarter 2011, with advertising revenues of approximately $253.9 million, down 6.3%, and circulation revenues of about $65.7 million, down 1.9%. On a 13-week basis, total digital advertising revenues grew 3.5% in the fourth quarter of 2012, with digital-only advertising revenues up 14.9% from the 2011 quarter. Total digital advertising represented 20.2% of total advertising revenues in the fourth quarter of 2012 compared to 18.5% of total advertising revenues in the fourth quarter of 2011.
Net loss for fiscal 2012 was $0.1 million, or 0 cents per share and included the $60.0 million after-tax loss on debt refinancing taken in the fourth quarter of 2012. Net income for fiscal 2011 was $54.4 million, or 63 cents per diluted share.
Revenues in 2012 were down 3.1% to $1.231 billion compared to $1.270 billion in 2011. On a 52-week basis, 2012 total revenues were an estimated $1.208 billion, down 4.9% compared to 2011 total revenues, with advertising revenues of approximately $898.2 million, down 6.1% and circulation revenues of approximately $258.4 million, down 1.5%.
Nordstrom, Inc. today reported an 11.4 percent increase in same-store sales for January.
Similar to many other retailers, Nordstrom follows the retail 4-5-4 reporting calendar, which included an extra week in the fourth quarter of fiscal 2012 (the 53rd week). In the 53rd week, the company had preliminary total retail sales of approximately $162 million. The 53rd week is excluded from same-store sales calculations.
Preliminary total retail sales of $951 million for the five week period ended February 2, 2013 increased 38.4 percent compared with total retail sales of $688 million for the four week period ended January 28, 2012. Excluding sales for the 53rd week, preliminary total retail sales for the four week period ended January 26, 2013 increased 14.9 percent.
Fourth quarter same-store sales increased 6.3 percent compared with the same period in fiscal 2011. Preliminary fourth quarter total retail sales of $3.60 billion increased 13.5 percent compared with total retail sales of $3.17 billion for the same period in fiscal 2011.
Fiscal year 2012 same-store sales increased 7.3 percent compared with the same period in fiscal 2011. Preliminary fiscal year 2012 total retail sales of $11.76 billion increased 12.1 percent compared with total retail sales of $10.50 billion for the same period in fiscal 2011.
Kohl’s Corporation reported today that comparable store sales for the four weeks ended January 26, 2013 compared to January 28, 2012 increased 13.3 percent. Due to the 53rd week in the fiscal 2012 calendar, fiscal January 2013 included a fifth week which ended on February 2, 2013. Sales for the fifth week of fiscal January 2013 were $169 million.
Comparable store sales, which exclude sales for the fifth week of fiscal January 2013, increased 1.9 percent for the quarter and 0.3 percent for the year.
The New York Times Company announced today fourth-quarter 2012 diluted earnings per share from continuing operations increased to $.76 from $.34 in the same period of 2011, largely due to the special items discussed below. Excluding severance and special items, diluted earnings per share from continuing operations decreased to $.32 in the fourth quarter of 2012 from $.39 in the fourth quarter of 2011. The decrease was due principally to a higher effective tax rate applicable in the fourth quarter of 2012 after the exclusion of severance and special items.
The Company had operating profit of $44.0 million in the fourth quarter of 2012 compared with $90.8 million in the same period of 2011. Excluding depreciation, amortization, severance and the special items discussed below, operating profit was $124.5 million in the fourth quarter of 2012 compared with $126.8 million in the fourth quarter of 2011.
“2012 showed both the opportunities and challenges we face as a company,” said Mark Thompson, president and chief executive officer. “We saw continued strong growth in digital subscriptions as well as increased revenue from our large print circulation base. Indeed, for the first time in our history, annual circulation revenues surpassed those from advertising. Our pay model continued to prove itself, with approximately 668,000 paid digital subscriptions across the Company at quarter end, up 13 percent from the end of the third quarter."
The United States Postal Service announced plans today to transition to a new delivery schedule during the week of Aug. 5, 2013 that includes package delivery Monday through Saturday, and mail delivery Monday through Friday. The Postal Service expects to generate cost savings of approximately $2 billion annually, once the plan is fully implemented.
“The Postal Service is advancing an important new approach to delivery that reflects the strong growth of our package business and responds to the financial realities resulting from America’s changing mailing habits,” said Patrick R. Donahoe, Postmaster General and CEO. “We developed this approach by working with our customers to understand their delivery needs and by identifying creative ways to generate significant cost savings.”
Over the past several years, the Postal Service has advocated shifting to a five-day delivery schedule for mail and packages. However, recent strong growth in package delivery (14 percent volume increase since 2010) and projections of continued strong package growth throughout the coming decade led to the revised approach to maintain package delivery six days per week.
“Our customers see strong value in the national delivery platform we provide and maintaining a six-day delivery schedule for packages is an important part of that platform,” said Donahoe. “As consumers increasingly use and rely on delivery services — especially due to the rise of e-commerce — we can play an increasingly vital role as a delivery provider of choice, and as a driver of growth opportunities for America’s businesses.”
Once implemented during August of 2013, mail delivery to street addresses will occur Monday through Friday. Packages will continue to be delivered six days per week. Mail addressed to PO Boxes will continue to be delivered on Saturdays. Post Offices currently open on Saturdays will remain open on Saturdays.
Market research conducted by the Postal Service and independent research by major news organizations indicate that nearly seven out of ten Americans (70 percent) supported the switch to five-day delivery as a way for the Postal Service to reduce costs in its effort to return the organization to financial stability.¹ Support for this approach will likely be even higher since the Postal Service plans to maintain six-day package delivery.
Direct-to-customer merchants who mail catalogs told Multichannel Merchant they are fine with the United States Postal Service's 5-day delivery plan, which is scheduled to go into effect the week of Aug. 5.
Under the plan announced on February 6 by the USPS, catalogs and other forms of mail will no longer be delivered on Saturdays. Packages, however, will still be delivered on Saturdays.
USPS said in a statement that once the plan is fully implemented, it will generate a cost savings of about $2 billion annually.
Catalog mailers and others in direct-to-customer said they think the savings will be passed on to them in the form of fewer future rate increases.
"If going to 5-day (non-package) delivery is essential to aligning USPS costs with its declining revenues, then it is essential for the sustainability of the mailing industry and our economy," said Terri Alpert, founder and CEO of Stony Creek Brands, which mails the Uno Alla Volta artisan gift catalog and The Artisan Table, formerly known as The Cooking Enthusiast and Professional Cutlery Direct.
Lynn Gore, vice president of marketing at Plow & Hearth, added that its in-home dates are on Mondays, and even now when it gets some early deliveries, it only represents about 3% of the total mail stream.
"We may see some demand shift, but I don’t think it will be a negative impact overall," Gore said.
Lois Brayfield, president and chief creative officer at consultancy J. Schmid & Assoc., said that her catalog-mailing customers are not panicking about the USPS's decision to cut mail delivery to five days.
But she added that it is something to keep an eye on because Monday tends to be the strongest delivery day for catalogs. So in theory, it could mean the catalog delivered on a Monday could become part of a cluttered mailbox.
The announcement that the United States Postal Service will eliminate Saturday mail delivery to street addresses (a move the USPS claims will save $2 billion per year), won’t affect b-to-b publishers as dramatically as consumer magazine publishers. However, the move will do little to improve the economic viability of the USPS.
“ABM supports the efforts of the USPS to reduce costs, and as we have stated, we support the elimination of Saturday delivery along with other measures to reduce costs and put the Postal Service in a better financial position,” said Jack Widener, ABM's postal counsel. “But in this case that has not occurred and we are disappointed in that regard. Lack of action by Congress along with Postal labor union positions have forced the Postal service to make the decision to eliminate Saturday a first step. To put it simply, we believe cutting costs that reduce service to your customers should only be taken as part of the implementation of an overall plan for reducing costs. Congress must take action on the other needed changes.”
The Coalition for a 21st Century Postal Service says Congress should focus on three core elements of stabilization including reamortization of payments for prefunding retiree health benefits; return to USPS of its overpayments to the federal Employees Retirement System; and assuring USPS the authority to streamline its service.
The American Forest & Paper Association (AF&PA) has issued its response to the United States Postal Service (USPS) announcement to eliminate six-day mail delivery service.
“The U.S. Postal Service’s decision to eliminate six-day mail delivery is a short-sighted solution with questionable financial savings and will only drive volume out of the system, stripping both the USPS and businesses that depend on the mailing industry of potential revenues,” said AF&PA President and CEO Donna Harman. “The greatest contributor to the record $15.9 billion USPS losses in 2012 was not the cost of Saturday delivery but the $11.1 billion in unrealistic benefit obligations. Reduction of service puts mailing industry jobs at risk and eliminates the Postal Service’s opportunities to leverage its network to find new revenue growth.”
The USPS is the essential component of a $1 trillion mailing industry that employs more than 8 million Americans in large and small businesses across the country such as advertising, printing, paper manufacturing, publishing, and financial services. Approximately one-third, or $6 billion, of printing and writing paper produced in the U.S. is delivered through the Postal Service.
“We urge Congress to take action to ensure the long-term stability of the Postal Service and to passing comprehensive postal reform that supports both long-term cost reductions and new revenue sources, not by cutting critical services needed for delivery of time sensitive information,” said Harman.
Urban Outfitters, Inc., a leading lifestyle specialty retail company operating under the Anthropologie, BHLDN, Free People, Terrain and Urban Outfitters brands, today announced record net sales for the quarter and year ended January 31, 2013.
Total Company net sales for the fourth quarter of fiscal 2013 increased to $857 million or 17% over the same quarter last year. Comparable retail segment net sales, which include our comparable direct-to-consumer channel, increased 11% while comparable store net sales were flat. Direct-to-consumer returns at stores are charged against store sales. Excluding these returns, comparable store net sales would have been low single-digit positive. Comparable retail segment net sales increased 37% at Free People, 11% at Urban Outfitters and 7% at Anthropologie. Direct-to-consumer net sales surged by 44% for the quarter and wholesale segment net sales rose 22%.
For the year ended January 31, 2013, total Company net sales increased to $2.8 billion or 13% over the prior year. Comparable retail segment net sales increased 7%, while comparable store net sales decreased by 1%. Excluding the direct-to-consumer returns at stores, comparable store net sales would have been low single-digit positive. Direct-to-consumer net sales increased by 31% for the year and wholesale segment net sales increased 12%.
The Bon-Ton Stores, Inc. today announced sales for the five, fourteen and fifty-three weeks ended February 2, 2013, in accordance with the National Retail Federation fiscal reporting calendar. The comparable percentage change information presented below is based upon comparison of the four, thirteen and fifty-two weeks ended January 26, 2013 with the prior year corresponding periods ended January 28, 2012.
Comparable store sales in the four weeks ended January 26, 2013 decreased 0.4%, compared with the four-week period last year. Total sales for the five weeks ended February 2, 2013 increased 15.2% to $200.8 million, compared with $174.4 million in the four-week period last year.
For the fourth quarter of fiscal 2012, comparable stores sales in the thirteen weeks ended January 26, 2013 increased 1.0%, compared with the thirteen-week period last year. Total sales in the fourteen weeks ended February 2, 2013 increased 3.2% to $1,015.1 million, compared with $983.2 million in the thirteen-week period last year.
Fiscal 2012 comparable store sales in the fifty-two weeks ended January 26, 2013 increased 0.5%, compared with the fifty-two week period last year. Fiscal 2012 total sales for the fifty-three weeks ended February 2, 2013 increased 1.2% to $2,919.4 million, compared with $2,884.7 million in the fifty-two week period last year.
Macy's, Inc. today reported total sales of $1.799 billion for the five weeks ended Feb. 2, 2013, an increase of 34.6 percent compared with total sales of $1.337 billion in the four weeks ended Jan. 28, 2012. The January period reflects an extra week in fiscal 2012, creating a 53-week fiscal year that occurs approximately every six years in the accounting cycle for most retailing companies.
On a same-store basis - which includes comparable four-week periods this year and last year - Macy's, Inc. sales were up 11.7 percent in January as compared to January 2012.
Graphic Packaging Holding Company, a leading provider of packaging solutions to food, beverage and other consumer products companies, today reported Net Income for fourth quarter 2012 of $22.9 million, or $0.06 per share, based upon 392.2 million weighted average diluted shares. This compares to fourth quarter 2011 Net Income of $265.6 million, or $0.67 per share, based on 396.3 million weighted average diluted shares. The fourth quarter of 2011 was positively impacted by the release of a $265.2 million tax valuation allowance.
Adjusted Net Income for the fourth quarter of 2012 was $33.2 million, or $0.08 per diluted share, when adjusted for $10.3 million in charges (net of tax) related to business combinations and other special charges (which are detailed in the financial attachments hereto). This compares to fourth quarter 2011 Adjusted Net Income of $7.0 million or $0.02 per diluted share.
For the full year 2012, Net Income was $122.6 million, or $0.31 per diluted share, based on 396.2 million weighted average diluted shares. This compares to 2011 Net Income of $276.9 million or $0.73 per diluted share, based on 381.7 million weighted average diluted shares. Full year 2012 Adjusted Net Income was $146.3 million or $0.37 per diluted share, compared to full year 2011 Adjusted Net Income of $100.7 million, or $0.26 per diluted share.
Norske Skog continues to reduce debt and fixed costs despite challenging markets. Net loss was significantly influenced by non-cash items such as impairments and change in value of energy contracts.
Norske Skog had gross operating earnings (EBITDA) in the fourth quarter of 2012 of NOK 327 million, down from NOK 365 million in the third quarter. This decline was due to weak seasonal effects and NOK appreciation. Gross operating earnings for the full year 2012 were NOK 1 464 million, a reduction of NOK 51 million from 2011, mainly due to lower production capacity after the closure of Norske Skog Follum, sale of Norske Skog Bio Bio and Norske Skog Parenco.
Net profit before special items were NOK 432 million in 2012 compared to NOK 12 million in 2011. The net loss of NOK 2.8 billion for 2012 was heavily influenced by NOK 3.2 billion in impairments, change in value of energy contracts and restructuring expenses. Impairments reflect increased uncertainty about sales price expectations. In addition, reassessment of Norske Skog's business in Australasia and reduction in the expected useful life of Norske Skog Walsum influenced impairments.
Cash flow from operating activities was NOK 382 million before net financial payments in the quarter. Underlying interest expenses in 2012 fell from 2011 in line with the reduction of net debt.
Orchids Paper Products Company today reported year-end 2012 financial results.
•Full year net sales increased $3.0 million, or 3%, to $100.8 million, marking the first time the Company has achieved more than $100 million in net sales. Total net sales in the fourth quarter of 2012 decreased 6% to $24.0 million, compared with $25.7 million in the same period in 2011.
•Full year net sales of converted product were $90.5 million, a new twelve-month record, which represented an increase of $8.6 million, or 10%, over 2011. Net sales of converted product in the fourth quarter of 2012 were $21.8 million, a decrease of $2.0 million, or 8%, over the prior year quarter.
•Full year net income for 2012 was $9.3 million, an increase of $3.1 million, or 49%, compared to the $6.2 million in 2011. Fourth quarter 2012 net income was $2.2 million, a decrease of $561,000, or 21%, compared with $2.7 million of net income in the same period of 2011.