Paperclips Blog | Ennis Results

  • 08.08.2012

    Fortress Paper Announces Second Quarter Results

    Fortress Paper Ltd. reported 2012 second quarter EBITDA of $2.3 million. For the first quarter of 2012, EBITDA loss was $1.8 million and for the second quarter of 2011, EBITDA was $4.6 million.

    Excluding corporate costs, the three business segments’ combined EBITDA was $3.6 million in the 3 months ended June 30, 2012. The Specialty Papers Segment contributed $10.5 million EBITDA while the Dissolving Pulp Segment and the Security Paper Products Segment generated EBITDA losses of $0.7 million and $6.2 million, respectively. Corporate costs contributed to EBITDA loss in the amount of $1.3 million.

    Net income for the second quarter of 2012 was $12.5 million or basic and diluted net income of $0.87 per share. In the prior quarter net loss was $10.5 million or diluted loss per share of $0.73. In the prior year comparative period, net income was $2.9 million or diluted net income per share of $0.19. The much improved current period result was primarily due to the gain realized on the sale of certain non-core assets in the Security Paper Products Segment.

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  • 08.08.2012

    ABC: Bumpy First Half For Consumer Magazine Circ, Newsstand

    The Audit Bureau of Circulation’s semi-annual Fas-Fax report for U.S. consumer magazines shows what many in this sector of the magazine industry were expecting—a decrease in total circulation and newsstand sales.

    For the first time, the report breaks out figures for standalone digital replicas, which now account for 1.7 percent of total circulation. There are 258 U.S. magazines reporting more than 5.4 million digital replica editions, which more than doubled from 2 million in the first half of 2011.

    Of the top 25 U.S. consumer magazines, 14 saw a decrease in paid verified circulation, with Hearst’s Woman’s Day losing the most in that category by 10.7 percent. The biggest gainer was Game Stop’s Game Informer magazine, increasing its total paid and verified circulation by 37.2 percent to more than 8.1 million.

    Condé Nast’s Glamour saw a 3.0 percent increase in its total paid and verified circulation, and Meredith’s Family Circle saw an increase of 7.4 percent—the only other publications other than Game Informer to see an increase above 0.9 percent.

    The newsstand is suffering for consumer magazines across the board—21 of the top 25 publications saw a decrease in the number of single copy sales. The biggest losers included Weight Watchers (27.5 percent), Vanity Fair (18.8 percent), People (18.6 percent), O, The Oprah Magazine (17.9 percent), Vogue (16.5 percent) and Cosmopolitan (15.5 percent).

    Only four of the top 25 publications saw an increase in newsstand sales—Food Network Magazine (17.8 percent), Family Circle (8.0 percent), Woman’s Day (6.2 percent) and Life and Style Weekly (2.5 percent).

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  • 08.08.2012

    Oil Declines From Two-Month High Amid Signs of Economic Weakness

    Oil slid from the highest close in more than two months in New York amid signs of weakening demand in the U.S., the world’s biggest crude consumer, and slowing growth in Germany.

    Futures fell as much as 0.9 percent, dropping for the first time in four days. Crude consumption declined 4 percent to 15.9 million barrels a day last week, the biggest percentage decrease in a month, data from the American Petroleum Institute showed. Gasoline usage was the lowest since February, according to the API figures. German industrial production declined in June, led by a drop in construction output, data from the Economy Ministry in Berlin showed today.

    “There are no signs of growth coming out of Europe’s largest economies,” said Christopher Bellew, a senior broker at Jefferies Bache Ltd. in London, who correctly predicted at the end of last month that oil would rebound. “Oil looks poised for a short-term downward retracement today.”

    Oil for September delivery decreased as much as 85 cents to $92.82 a barrel in electronic trading on the New York Mercantile Exchange and was at $93.10 at 11:29 a.m. London time. It climbed 1.6 percent yesterday to $93.67, the highest settlement since May 15. The contract has rebounded 19 percent from its low this year of $77.69 on June 28.

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  • 08.08.2012

    Consumer Confidence Continues to Decline in July, According to the Discover U.S. Spending MonitorSM

    Concern over the economy and anticipation of higher expenses brought the Discover U.S. Spending Monitor to its lowest level of the year in July. The Monitor, a 5-year-old daily poll tracking economic confidence and spending intentions of nearly 8,200 consumers throughout the month, declined 1.4 points to 89.3. The monitor last dropped below 90 in December 2011.

    The percentage of respondents reporting the U.S. economy as poor remained steady at 53 percent. However, consumers who expect the economy to get worse increased four percentage points from the prior month to 53 percent in June. This is the first time in 2012 that more than half of respondents felt this way.

    There was a significant increase in the percent of men who feel the economy is getting worse, up nine percentage points from June at 57 percent. The number of women feeling this way remained unchanged at 50 percent.

    While 57 percent of married people expect the economy to get worse (an increase of three percentage points from June), only 48 percent of single people expect the economy to get worse. However, this was a substantial increase from only 40 percent of single people with the same expectation in June.

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  • 08.08.2012

    Buckeye's Fourth Quarter and Fiscal Year 2012 Results

    Buckeye Technologies Inc. today announced record sales and earnings for fiscal year 2012. Net sales for the year (adjusted to exclude discontinued Americana operations) were $895 million, a new record and up $14 million or 2% compared to fiscal 2011, as higher selling prices offset a $10MM sales reduction due to the divestiture of our King converting business and lower shipment volumes from both our Foley wood specialty mill and our nonwovens business. Adjusted net income* for the 2012 fiscal year was a record $111 million, or $2.76 per share, compared to $91 million or $2.23 per share in fiscal 2011. The growth in adjusted net income was due to significantly higher selling prices for our high-end specialty wood and cotton fiber products which more than offset the impact of lower fluff pulp prices. Net income also benefited in fiscal year 2012 from reduced selling, research and administrative expenses and lower interest expense.

    Fourth quarter adjusted net income* was $26.2 million or $0.66 per share. This excludes net after-tax charges of $2.8 million, or $0.08 per share, primarily relating to the sale of our Americana, Brazil cotton linter pulp plant and adjustments relating to the cellulosic biofuel credit. Adjusted net income* was off slightly compared to the prior year period’s $27.8 million or $0.68 per share, which excluded an after-tax non-cash asset impairment charge of $13.0 million, or $0.32 per share, relating to plans to close our Canadian nonwovens plant by the end of December 2012 as well as other special items of $0.6 million or $0.01 per share.

    Net sales were $225 million for the fourth quarter of fiscal 2012, down $24 million or 10% versus record net sales of $249 million in the fourth quarter of fiscal 2011 (which have been adjusted to exclude discontinued Americana operations). About $5 million of the reduction in sales was related to the divestiture of our King converting business.

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  • 08.08.2012

    Macy's, Inc. Reports Earnings of 67 Cents Per Diluted Share for the Second Quarter

    Macy’s, Inc. today reported earnings of 67 cents per diluted share for the second quarter of 2012, ended July 28, 2012. This represents a 22 percent increase in earnings per share from earnings of 55 cents per diluted share in the second quarter of 2011.

    Macy’s, Inc.’s diluted earnings per share in the first half were $1.09, an increase of 27 percent compared with earnings of 86 cents per share in the first half of 2011.

    Sales in the second quarter totaled $6.118 billion, up 3.0 percent from total sales of $5.939 billion in the second quarter of 2011. On a same-store basis, Macy’s, Inc.’s second quarter sales were up 3.0 percent in 2012 as compared to the second quarter of 2011.

    For the year to date, Macy’s, Inc. sales totaled $12.261 billion, up 3.7 percent from total sales of $11.828 billion in the first 26 weeks of 2011. On a same-store basis, Macy’s, Inc.’s first half sales were up 3.7 percent in 2012 as compared to the first half of 2011.

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  • 08.07.2012

    Rebuild increases production by 10% at Stora Enso Sachsen

    After Voith carried out a rebuild of the Eilenburg PM 1 at Stora Enso Sach-sen, Germany, the paper machine was successfully started up again in May 2012. The aims of Stora Enso were to improve runability and to elimi-nate existing bottlenecks in the system. Furthermore, the maximum operat-ing speed of the paper machine was increased to 2,000 m/min, corre-sponding to a production increase of about 10% (depending on the grade range). Already one month after rebuild, the operation speed exceeded 1,900 m/min.

    With the rebuild a new NipcoFlex press module was installed, which has increased the dryness content after the press by 3-4% after just a short time. In addition, a new exhaust system in the wet end and a JetCleaner for cleaning the bottom wire provide for more cleanliness and thus im-proved runability. The old calender was replaced by a Janus calender so as to increase the paper quality. The project also included a rebuild of the dryer section together with fabric stretchers, fabric guides and the machine air ventilation system. A new trim cutter and a new threading system com-pleted the scope of supply.

    Stora Enso Sachsen produces newsprint and telephone book paper in the basis weight range of 34 to 48.8 g/m². It uses 100% recycled fibers.

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  • 08.07.2012

    UPM's H1 Cash Flow from Ongoing Businesses Improved

    “The profitability of UPM’s businesses improved in the first half of the year 2012 compared to the second half of 2011. We achieved this by continuing our consistent work to reduce fixed costs. Furthermore, sales prices and raw material costs developed favourably.

    In the second quarter, our growth businesses – Energy, Pulp, Asian Paper and Label - maintained strong profitability. However, the Group’s operating profit was affected by the exceptional quarter in Other operations, mainly due to fair value losses in currency hedges.

    In Paper, deliveries recovered somewhat from the previous quarter, although this was offset by seasonally higher fixed costs. Myllykoski cost synergies were well on track with two thirds of planned benefits already realised. Despite this, Paper’s profitability level remains unacceptable.

    Q2/2012

    •Earnings per share excluding special items were EUR 0.14 (0.26), and reported EUR 0.17 (0.56)
    •EBITDA was EUR 316 million, 12.1% of sales (372 million, 15.4% of sales)
    •EBITDA was affected by seasonally higher fixed costs and fair value losses of cash flow hedges
    •Net debt decreased by EUR 71 million to EUR 3,385 million after the dividend payment and asset sales

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  • 08.07.2012

    UPM Grows in China and in the Fast Developing Label Materials Segment

    UPM takes further steps to reshape its business portfolio and expands in profitable growth businesses in Asia. The company will increase its presence in the attractive Asian paper segments and strengthen its position in the label materials value chain by building a new woodfree speciality paper machine at its Changshu mill in China.

    “This move is aligned with our strategic target to have more than 50 % of our sales from well performing growth businesses in the latter part of the decade. It supports our growth in China and provides an excellent platform to strengthen partnerships with self-adhesive labelstock customers and expand into new end uses in Asia. It also supports the good profitability of our growth businesses”, says Jussi Pesonen, UPM’s President and CEO.

    The new machine is an uncoated woodfree speciality machine capable of producing up to 360,000 tonnes of uncoated woodfree grades and high quality label papers. The machine will start up by the end of 2014. The investment will also include future-oriented infrastructure investments in the Changshu site. The total investment cost is CNY 3,000 million (EUR 390 million). In addition, UPM Changshu is finalising a 100,000 tonnes cut-size sheeting line investment which strengthens the Group’s leading position in office paper grades in China. 

    Both label paper and uncoated woodfree papers have a healthy demand outlook in Asia. The annual growth of UPM’s label paper mix is expected to be 8 % in Asia and 4 % globally. In uncoated woodfree grades, UPM focuses on high quality office paper, where the Chinese market is expected to grow by 8 % annually.

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  • 08.07.2012

    Stora Enso Price-Fix Case Revived by U.S. Appeals Court

    Stora Enso North America Corp., a former unit of the Finnish commercial printing products company, must face an antitrust lawsuit brought by its customers, a federal appeals court ruled, reversing a trial judge’s dismissal of the case.

    The U.S. Court of Appeals in Manhattan said today that a jury could potentially find that the company, which was sold to Newpage Corp. in 2007, conspired to fix prices. The three-judge panel affirmed the lower court’s decision to throw out the case against its former Helsinki-based parent, Stora Enso Oyj (STEAV), for lack of evidence.

    Paper buyers alleged that executives at Stora Enso’s then- U.S. unit and another Finnish paper maker, Helsinki-based UPM- Kymmene Ojy (UPM1V), engaged in secret meetings and conspired to fix prices in 2002 and 2003, according to the decision. Damages for the plaintiffs were estimated to be as much as $102.5 million, the decision said.

    “We hold that the district court erred in granting summary judgment to SENA because a jury could reasonably find that SENA and UPM entered into an agreement to raise the price of publication paper, and that, as implemented, this agreement damaged plaintiffs,” U.S. Appeals Court Judge Susan L. Carney said in the decision.

    The civil case followed an earlier criminal probe by the Department of Justice. A jury in the criminal case acquitted SENA of U.S. antitrust law violations in 2007, the appeals court said.

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  • 08.07.2012

    House GOP waiting on Postal Service drop-dead date to move on reform bill

    The House has left Washington without passing a fix to the Postal Service, and Republicans now say they are not likely to bring the issue to the floor until after November’s elections.

    House Republicans acknowledge that postal reform could be a tough vote for some of their members, with the issue not breaking down as cleanly along ideological lines as subjects such as the Bush-era tax rates the House voted on just before leaving for recess.

    But sponsors of the House GOP postal bill suggest another factor at play as well: Lawmakers don't know exactly when the Postal Service might hit a doomsday date when they wouldn't be able to deliver the mail.

    With mail volume declining, the Postal Service is currently losing $25 million a day, and recently defaulted on a $5.5 billion payment, earmarked for future retiree benefits, to the U.S. Treasury. The agency has another payment of roughly the same size due at the end of next month, which it also says it won’t be able to pay.

    But postal officials have added that, at least in the short-term, that default won’t affect their ability to deliver the mail and pay their employees.

    And with Congress having a habit of waiting to act until a deadline looms, that could give the House even less incentive to bring the bill to the floor before their members face voters in November.

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  • 08.07.2012

    Report: U.S. shopping-center industry posts healthy Q2 net income gain

    Total operating income of all shopping centers on a square-foot basis in the second quarter of 2012 rose 4.9% from the same quarter last year, while operating expenses rose by a larger 5.8%, according to a new quarterly shopping-center benchmarking report from The National Council of Real Estate Investment Fiduciaries (NCREIF) and the International Council of Shopping Centers (ICSC).
     
    Despite expenses outpacing income gains, net operating income (NOI) per square foot actually improved by a solid 4.5% in the quarter, compared with the second quarter of 2011.
     
    “Second-quarter NOI for the shopping-center industry helped increase the total investment return by 3.0% over that same period,” said Jeffrey R. Havsy, director of research for NCREIF. “Retail was the best performing property type in the second quarter and occupancy rates for all-shopping centers remained steady at 90%.”
     
    Shopping center performance in the United States differs widely by type of sub-sector, according to real estate data collected by NCREIF. The net operating income of powers centers during the second quarter energized the industry with its 8.6% year-over-year gain. Neighborhood-center net operating income posted a 6.1% gain, while super-regional malls gained 5.4%, compared with the same quarter of the prior year. However, the metric for community centers and regional malls were down in the quarter.
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  • 08.07.2012

    American Media Acquires Soap Opera Digest

    Last night (Aug. 6), American Media Inc. chairman/president/CEO (since April 1999) David Pecker announced the acquisition of the weekly Soap Opera Digest from Source Interlink Media. The news was no surprise, because AMI had managed SOD for some time, with group publisher David Jackson already reporting to Pecker. Editor-in-chief Stephanie Sloane now reports to him, too.
     
    The price was not disclosed, but it had to be far less than the $600 million that K-III Magazines (later Primedia) paid News Corp. in July 1991 for SOD, New York magazine, Seventeen, and other titles. Then, SOD''s circulation was close to 1.5 million, as tv soap operas were the rage. That continued through the late-1990s/early-2000s, when the brand expanded to included the NBC-televised Soap Opera Awards.
     
    Now, SOD's circ is below 300,000 as such soaps as All My Children, The Guiding Light and One Life to Live have gone by the wayside and others--led by the venerated General Hospital--are hanging by a thread. What is now the daytime darling are the talk shows.
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  • 08.07.2012

    EFI Launches M500 Self-Serve Copy and Print Station for Campuses, Libraries and Print Providers

    EFI™, a world leader in digital printing innovation, has launched the M500 Self-Serve Copy and Print Station, the industry's only self-serve system that allows mobile printing from mobile phones, iPads, USB drives and cloud accounts like Google Drive™, Dropbox, Box, and EFI PrintMe®. The M500 station is unique in that it accepts credit cards, campus cards, and cash cards at the device, eliminating the need for coin-operated machines. The system is also Payment Application Data Security Standard (PA-DSS) validated to assist in Payment Card Industry (PCI) compliance audits. The M500 station is available immediately through EFI resellers, and a video of how the system works can be seen online here.

    "Students today are more digital, more mobile, and keep more documents in the cloud," said John Henze, vice president of Fiery marketing at EFI. "Antiquated devices like coin-operated copiers are not meeting their printing needs and create cash management headaches for university staff. EFI's M500 station provides the easiest way for users to access, pay and print in a completely self-serve environment."

    Tablets, mobile phones and laptops, as well as the use of online cloud storage, are the new tools for students. According to a Harris Interactive poll, the number of students using tablets has tripled over the past year, and 36 percent of the college students surveyed plan to buy a tablet in the next six months. Additionally, 63 percent believe that tablets will replace textbooks in the next five years. At the same time, printed documents and materials are still a requirement at most universities.

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  • 08.07.2012

    Cascades announces substantial investments for its Michigan Plant to support its new product innovation initiatives

    Cascades, a leader in the recovery and manufacturing of green packaging and tissue paper products, is pleased to announce that substantial investments, up to $750000, will be made in its Cascades Enviropac HPM, LLC plant, located in Grand Rapids, Michigan. By the end of 2012 and beginning 2013, new equipment will be added to modernize the plant and optimize its overall efficiency, from the competitiveness, quality and service standpoints. These investments will also allow us to retain jobs in the plant and its offices.

    This is a great opportunity for Cascades to strengthen its market shares in the Central and Midwest Regions, while increasing its industrial product offering such as Technicomb™ protective packaging systems, Flexicomb® flexible protective packaging, and ThermaFresh™ recyclable therma-insulator containers for fresh food conservation. These products are the perfect alternatives to traditional packaging, since they are made of honeycomb paperboard and fibre composites which are recyclable. As Mr. Simon Gosselin, General Manager for the Industrial Packaging sector of Cascades Specialty Products Group, mentioned: “These investments are directly in line with Cascades' key strategic axes to further support the operations, with the ultimate goal of assuring the commercial success of our innovative, eco-designed products.”

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  • 08.07.2012

    Oil Near Two-Week High on U.S. Supplies; Brent Rises Above $110

    Oil traded near its highest in two weeks in New York on forecasts that crude inventories fell in the U.S., the world’s largest consumer of the commodity. Brent surpassed $110 a barrel for the first time in 11 weeks.

    West Texas Intermediate futures were little changed, recouping an earlier loss of 0.5 percent. U.S. crude stockpiles probably fell by 1.6 million barrels last week, according to a Bloomberg News survey of nine analysts before an Energy Department report tomorrow. Tropical storm Ernesto was forecast to become a hurricane as it heads for Mexico’s Bay of Campeche..

    “The market has been bolstered by significant crude stock drawdowns reported in recent weeks,” said Andrey Kryuchenkov, an analyst at VTB Capital in London. “There’s probably a bit of additional support coming from Ernesto, set to become a hurricane by late tonight.”

    Crude for September delivery was at $92.47 a barrel in electronic trading on the New York Mercantile Exchange at 11:58 a.m. London time, having slid as much as 42 cents to $91.78 a barrel. It settled yesterday at $92.20, the highest level since July 19. Prices are 6 percent lower this year.

    Brent crude for September settlement rose above $110 a barrel for the first time since May 17.

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  • 08.07.2012

    Appleton reports second quarter 2012 results

    Appleton’s second quarter 2012 net sales of $213.9 million decreased 1.2% compared to second quarter 2011 net sales. However, the Company’s strong revenue growth continued in the thermal papers segment where an 8.6% increase in net sales nearly offset the sales decreases in carbonless papers and Encapsys.

    Excluding one-time items, second quarter 2012 adjusted operating income was $16.9 million, $6.3 million higher than adjusted operating income reported for second quarter 2011.

    Appleton reported a second quarter 2012 operating loss of $32.5 million compared to operating income of $10.7 million during second quarter 2011. The operating loss for second quarter 2012 was largely the result of $42.9 million of costs related to ceasing papermaking operations at the West Carrollton, Ohio, mill and transitioning to base paper produced by Domtar as part of the 15-year supply agreement announced in February. Appleton also recorded $6.5 million of transaction costs associated with the proposed business combination between Appleton and Hicks Acquisition Company II. On July 13, the two companies announced they had agreed to discontinue the proposed business combination.

    Appleton’s net sales for the first six months of 2012 were $433.5 million, slightly lower than first half 2011 net sales of $434.6 million. Appleton reported an operating loss of $82.3 million for the first six months of 2012 compared to operating income of $21.0 million for the same period last year. Excluding one-time items, current year adjusted operating income was $29.7 million, $5.6 million higher than adjusted operating income reported for the first half of 2011. On a year-to-date basis, costs related to ceasing papermaking operations at West Carrollton and transitioning to Domtar base paper were $105.1 million. First half 2012 results also included $6.9 million of transaction costs discussed above. First half 2011 operating income included a $3.1 million charge for a litigation settlement.

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  • 08.07.2012

    Amazon Launches Textbook Rental

    Amazon.com, Inc. today announced the launch of Amazon Textbook Rental. Now college students can choose from thousands of textbooks to rent for the semester and save up to 70%. To rent a textbook, simply search Amazon.com for the book, select “Rent Now,” choose shipping and payment options, and check out. All textbook rentals are Fulfilled by Amazon and are eligible for Free Super Saver Shipping on orders over $25, and Prime Free Two-Day Shipping. At the end of the rental period, returns are free and simple with a prepaid, printable label.

    “College is expensive, and students are always looking for ways to save money on textbooks, which is why we’ve long offered great prices on both new and used textbooks,” said Ripley MacDonald, Director of Textbooks at Amazon.com. “With Textbook Rental, Amazon gives students yet another great option for saving money – it’s now easier than ever for students to get the books they need, in the format they want, at affordable prices. So no matter if a student wants to buy or rent their textbooks, Amazon can be their one-stop shop.”

    Textbook rentals and millions of other items including books, backpacks, electronics, video games, the latest fashion in clothing and shoes, and other college essentials are eligible for Free Two-Day Shipping with an Amazon Prime membership.

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  • 08.07.2012

    Ahlstrom's new filtration materials investment in Turin plant completed

    Ahlstrom, a global high performance materials company, has completed an investment on additional capacity in filtration material at its site in Turin, Italy. The company has started to ramp up its new saturator line, which is expected to be commercial during the third quarter of 2012, slightly ahead of the planned schedule. The value of the investment, initially announced in December 2010, is approximately EUR 17.5 million.

    "This capacity increase in Turin is an important step for Ahlstrom's Filtration business area. We are committed to grow with our customers as a global supplier in the filtration market with a full offering of filter media. We are pleased to be able to provide the newest technology to our customers, both for transportation and advanced filtration materials. This way we will help our customers to stay ahead," stated Tommi Björnman, Executive Vice President, Filtration.

    "We are excited about the new saturator line, which has state-of-the-art control equipment that ensures manufacturing of a very consistent, clean and high quality media," said Gary Blevins, Vice President, Transportation Filtration.

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  • 08.07.2012

    Office Depot Announces Second Quarter 2012 Results

    Office Depot, Inc., a leading global provider of office supplies and services, today announced results for the fiscal quarter ending June 30, 2012.

    Total Company sales for the second quarter of 2012 were approximately $2.5 billion, down 7% compared to the second quarter of 2011. On a constant currency basis, second quarter 2012 sales were down approximately 5% versus prior year.

    The Company reported a net loss, after preferred stock dividends, of $64 million or $0.23 per diluted share in the second quarter of 2012, compared to a net loss, after preferred stock dividends, of $29 million or $0.11 per share in the second quarter of 2011.

    Second quarter 2012 results included approximately $9 million of charges primarily related to restructuring activities and actions to improve future operating performance, and approximately $24 million related to a non-cash asset impairment charge.

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  • 08.06.2012

    Walgreens July Sales Decrease 3.7 Percent

    Walgreens had July sales of $5.59 billion, a decrease of 3.7 percent from $5.81 billion for the same month in fiscal 2011. Compared with prior months during this calendar year, July sales comparisons were more significantly impacted by an increase in generic drug introductions.

    Sales in comparable stores decreased by 7.0 percent. The effect of generic drug introductions in the last 12 months negatively impacted total comparable sales by 4.5 percentage points, while calendar day shifts positively impacted total comparable sales by 1.4 percentage points.

    Calendar year-to-date sales were $40.65 billion, a decrease of 3.0 percent from $41.92 billion in 2011.

    Fiscal 2012 year-to-date sales for the 11 months were $65.79 billion, down 0.4 percent from $66.06 billion in fiscal 2011.

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  • 08.06.2012

    The Washington Post Company Reports Second Quarter Earnings

    The Washington Post Company today reported net income attributable to common shares of $51.8 million ($6.84 per share) for the second quarter ended June 30, 2012, compared to $45.6 million ($5.74 per share) for the second quarter of last year. Net income includes $17.8 million ($2.36 per share) in income from discontinued operations and $2.0 million ($0.26 per share) in losses from discontinued operations for the second quarter of 2012 and 2011, respectively. Income from continuing operations attributable to common shares was $34.0 million ($4.48 per share) for the second quarter of 2012, compared to $47.6 million ($6.00 per share) for the second quarter of 2011.

    Revenue for the second quarter of 2012 was $1,006.9 million, down 5% from $1,061.3 million in the second quarter of 2011. The Company reported operating income of $60.4 million in the second quarter of 2012, compared to operating income of $82.1 million in the second quarter of 2011. Revenues were down at the education and newspaper publishing divisions, offset by increases at the television broadcasting and cable television divisions. Operating results were down at all of the Company’s divisions, except for the television broadcasting division.

    For the first six months of 2012, the Company reported net income attributable to common shares of $82.9 million ($10.87 per share), compared to $60.7 million ($7.57 per share) for the same period of 2011. Net income includes $38.1 million ($5.02 per share) in income from discontinued operations and $4.8 million ($0.59 per share) in losses from discontinued operations for the first six months of 2012 and 2011, respectively. Income from continuing operations attributable to common shares was $44.8 million ($5.85 per share) for the first six months of 2012, compared to $65.5 million ($8.16 per share) for the first six months of 2011. As a result of the Company’s share repurchases, there were 6% fewer diluted average shares outstanding in the first six months of 2012.

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  • 08.06.2012

    Tetra Pak Acquires Industrial Control Specialist

    Tetra Pak today announces the acquisition of the assets of Genius Automação de Sistemas Ltda., a São Paulo, Brazil-based specialist in industrial control systems.
     
    The acquisition will strengthen resources and competences in automation for Tetra Pak’s processing and packaging solutions, particularly in the area of Manufacturing Execution Systems (MES), control systems which manage and monitor work-in-process on a factory floor.
     
    “Genius implements high performance and scalable systems that improve industrial performance using state-of-the-art software technologies. Their automation competence combined with our own automation expertise will enable us to offer our customers the highest standard in manufacturing performance, operational efficiency and food quality and safety,“ said Tim High, Executive Vice President, Tetra Pak Processing Systems.
     
    The acquisition is part of Tetra Pak’s strategy to develop highly integrated and automated processing and packaging production lines. Genius’ automation competence will contribute to future development and offerings of Tetra PlantMaster™, Tetra Pak’s factory control, supervision and operation software.
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  • 08.06.2012

    Open Sky Media Buys Gulfshore Media Properties

    Open Sky Media, a portfolio company of Chicago-based private equity firm Hadley Capital, is expanding its network of regional magazines with acquisition of several properties from Gulfshore Media LLC. Terms of the deal were not released.

    The Florida-based Gulfshore Media division will now be among the largest of Open Sky Media’s (OSM) five regional offices. The deal includes monthlies Gulfshore Life and Gulfshore Business, and annual titles like Gulfshore Life At Home, Forever Young, the Southwest Florida Guide to the Arts and several custom publications for local Florida organizations.

    OSM has been rapidly expanding its regional publishing business with several acquisitions in multiple markets. As previously reported in November by FOLIO:, the company—which formed in March 2011 when it acquired titles Austin Monthly, Austin Monthly Home, and San Antonio magazine from Wisconsin-based Conley Publishing Group—is looking to have a portfolio of ten to twelve titles over time. In August 2011, the company acquired Slice magazine, which serves the greater Oklahoma City area.

    “Open Sky Media is a very attractive buyer because of their interest in the city magazine space and belief in long-term prospects for that industry,” says Dan Denton, president of Gulfshore Media LLC.

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  • 08.06.2012

    Catalyst Paper reaches agreement on financing facilities

    Catalyst Paper announced today that it has entered into a commitment letter with a Canadian chartered bank for a $175 million syndicated asset based loan facility (ABL Facility) maturing on the earlier of 5 years from date of closing and 90 days prior to maturity of any significant debt.
     
    The ABL Facility is a pre-condition for Catalyst to exit from creditor protection and would provide for the refinancing of existing credit facilities to fund the operations of the Company on exit from creditor protection and for general corporate purposes thereafter.  The collateral would primarily consist of all present and future working capital assets of the Company. The ABL borrowing base would be calculated on balances of eligible accounts receivable and inventory, less certain reserves. Customary fees are payable in connection with the ABL Facility. The ABL Facility is subject to the completion of a credit agreement, syndication, documentation and certain other conditions.
     
    Catalyst also entered into a commitment letter with respect to a secured exit notes facility of up to US$80 million (Exit Facility). The Exit Facility provides Catalyst with backstop financing should additional funding be required to pay costs and expenses or manage other contingencies on exit from creditor protection.
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  • 08.06.2012

    Oil Drops After Biggest Gain in 5 Weeks as Storm Slows

    Oil slid from the highest close in two weeks in New York amid speculation that its biggest gain in more than a month was excessive. Tropical Storm Ernesto slowed as it headed westward in the Caribbean.

    Futures slipped as much as 0.8 percent after closing 4.9 percent higher on Aug. 3, the most since June 29. Prices finished last week with a gain of 1.4 percent after U.S. payrolls rose more than estimated and service industries expanded at a faster pace. Ernesto, located about 180 miles east of the Nicaragua and Honduras border, had winds of about 50 mph, down from 60 mph on Aug. 4, according to the U.S. National Hurricane Center.

    “This is a small correction after the massive move last Friday,” said Eugen Weinberg, head of commodity market research at Commerzbank AG in Frankfurt. “Brent near $110 is a bit excessive.”

    Oil for September delivery slid as much as 77 cents to $90.63 a barrel in electronic trading on the New York Mercantile Exchange and was at $91.15 at 10:54 a.m. London time. It surged $4.27 to $91.40 on Aug. 3, the highest settlement since July 20.

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  • 08.06.2012

    Nielsen: Ad spending worldwide on the rise

    Global spending on advertising rose across most media types in the first quarter, with digital advertising seeing the largest boost, according to a report from Nielsen Co.

    According to Nielsen's “Global AdView Pulse,” worldwide ad expenditures were up 3.1% overall in the first quarter compared with the same period last year. Radio advertising was up 7.9%, and newspaper ad expenditures were 3.1% higher. Magazine advertising declined 1.4%.

    Advertisers spent 12.1% more on Internet advertising globally, with the Middle East and Africa (up 35.2%) and Latin America (up 31.8%) outstripping the average.

    In North America, outdoor advertising expenditures increased 4.4%, TV advertising grew 4.0% and radio was up 2.6%. Magazine advertising was down 5.3%, while newspaper ad spending fell 2.1%.

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  • 08.03.2012

    Gap Inc. Reports July and Second Quarter Sales Results

    Gap Inc. today reported that net sales for the second quarter of fiscal year 2012 increased 6 percent compared with last year, and July 2012 net sales increased 12 percent compared with last year.
     
    Net sales for the second quarter, which ended July 28, 2012, increased 6 percent to $3.58 billion compared with $3.39 billion for the second quarter last year. The company’s second quarter comparable sales were up 4 percent compared with a 2 percent decrease in the second quarter last year.

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  • 08.03.2012

    Rite Aid Reports 0.5 Percent Same Store Sales Increase for July

    Rite Aid Corporation today announced sales results for July.
     
    For the four weeks ended July 28, 2012, same store sales increased 0.5 percent over the prior-year period. July front-end same store sales increased 1.2 percent. Pharmacy same store sales, which included an approximate 742 basis points negative impact from new generic introductions increased 0.2 percent. Prescription count at comparable stores increased 4.5 percent over the prior-year period. 
     
    Same store sales for the 21-week period ended July 28, 2012 increased 1.5 percent over the prior-year period. Front-end same store sales increased 2.0 percent while pharmacy same store sales increased 1.2 percent. Prescription count at comparable stores increased 3.2 percent over the prior-year period. 
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  • 08.03.2012

    Saks Incorporated Announces July Comparable Store Sales

    Retailer Saks Incorporated today announced that owned sales totaled $200.7 million for the four weeks ended July 28, 2012 compared to $191.0 million for the four weeks ended July 30, 2011, a 5.1% increase. Comparable store sales increased 3.5% for the month.

    For July, the strongest categories included women’s contemporary and designer apparel; men’s accessories, shoes, and contemporary apparel; fashion and fine jewelry; handbags; and cosmetics and fragrances. This July, the Company added a one-day Electronic Gift Card (“EGC”) event to its promotional calendar. Management estimates that the additional EGC event positively impacted July comparable store sales by approximately 200 basis points.

    For the second quarter ended July 28, 2012, owned sales totaled $690.6 million compared to $658.1 million for the prior year second quarter ended July 30, 2011, a 4.9% increase. Comparable store sales increased 4.7% for the second quarter.

    On a year-to-date basis, for the six months ended July 28, 2012, owned sales totaled $1,434.5 million compared to $1,371.8 million for the prior year six months ended July 30, 2011, a 4.6% increase. Comparable store sales increased 4.7% for the six months.

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  • 08.03.2012

    Kohl's Corporation Reports July Comparable Store Sales

    Kohl’s Corporation reported today that for the four-week month ended July 28, 2012 total sales increased 3.4 percent and comparable store sales increased 1.7 percent over the four-week month ended July 30, 2011. For the quarter, total sales decreased 1.0 percent and comparable store sales decreased 2.7 percent from the second quarter of 2011.

    Kevin Mansell, Kohl’s chairman, president and chief executive officer, commented, “We are pleased with the improvement in July’s comparable store sales. We have made significant progress in improving inventory levels as we enter the Back-to-School season and believe we have the appropriate mix of both basics and fashion. From a line of business perspective, Footwear, Home and Men’s all reported mid-single-digit comp increases. The Midwest, Mid-Atlantic and Northeast were the strongest regions in July.”

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  • 08.03.2012

    Nordstrom Reports July and Second Quarter Sales

    Nordstrom, Inc. today reported July and second quarter sales, which reflected the shift in timing of the Anniversary Sale event, historically the Company’s largest sale event of the year. This event started one week later in July compared with last year. As a result, an additional week of the event shifted into August, which is part of the Company’s fiscal third quarter. Due to the event shift and as previously reported in the first quarter earnings release, the Company expected second quarter same-store sales to increase in the low-single-digit range.

    The Company reported a 0.9 percent increase in same-store sales for the four-week period ended July 28, 2012 compared with the four-week period ended July 30, 2011. Preliminary total retail sales of $1.00 billion for July 2012 increased 1.1 percent compared with total retail sales of $993 million for the same period in fiscal 2011.

    Second quarter same-store sales increased 4.5 percent compared with the same period in fiscal 2011. Preliminary second quarter total retail sales of $2.92 billion increased 7.4 percent compared with total retail sales of $2.72 billion for the same period in fiscal 2011.

    Year-to-date same-store sales increased 6.3 percent compared with the same period in fiscal 2011. Preliminary year-to-date total retail sales of $5.45 billion increased 10.3 percent compared with total retail sales of $4.95 billion for the same period in fiscal 2011.

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  • 08.03.2012

    Great Northern Paper’s Baxter Brite grade used in publishing record-breaking novel trilogy Fifty Shades

    Fictional billionaire playboy Christian Grey, the lead male character in E L James's Fifty Shades trilogy, lives in Seattle - but has strong ties to northern Maine. Nearly 3,000 tons of paper for the record-breaking trilogy has been produced at Great Northern Paper, LLC on Baxter Brite paper. Great Northern Paper's responsiveness, service, and the paper's consistent performance make Baxter Brite a reliable choice for Fifty Shades paper merchant Midland Paper and the books' publisher, Vintage, an imprint of Random House, Inc. GNP ships the paper to varying printers around the country.

    "The demand for Fifty Shades was so high that its paper merchant and publisher had to seek out many paper manufacturers and printers. It's a proud feeling to know that people around the U.S. are reading the books on our paper," said GNP President and CEO Richard M. Cyr. "We are happy to be doing business with both Midland Paper and Random House. We know our superior Baxter Brite paper is the right choice."

    Baxter Brite is produced at GNP's East Millinocket mill in Maine's north woods, literally next to the wood basket, which ensures consistency and direct access to a superior fiber supply. The durable fiber mix provides for enhanced opacity and a very clean sheet, preferred for book publishing.

    The trilogy - Fifty Shades of Grey, Fifty Shades Darker, and Fifty Shades Freed - has sold more than 10 million copies in trade paperback in the U.S. (and more than 20 million copies in paperback and ebook combined) making it one of the fastest-selling trilogies in publishing history. The three novels are number one, two, and three on the New York Times trade paperback fiction bestseller list. Since April, one out of every five adult print novels sold in the U.S. has been a Fifty Shades title.

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  • 08.03.2012

    Verso Paper Corp. Announces Permanent Shutdown of Sartell Mill

    Verso Paper Corp. today announced that after conducting a comprehensive assessment, Verso has made the difficult decision not to reopen its paper mill in Sartell, Minnesota. Verso's decision is based on the length of time that it would take to rebuild the mill structures and systems that were destroyed in the Memorial Day fire and explosion, and the marketplace challenges that would present.

    The permanent closure of the Sartell Mill will reduce Verso's annual coated groundwood capacity by 180,000 tons or approximately 20 percent, and will eliminate approximately 35,000 tons of annual supercalendered paper capacity.

    Verso President and CEO David Paterson met with state and local officials earlier today to deliver the news in person. "After a thorough review of the many factors involved following the Memorial Day tragedy, we have made the very difficult decision not to reopen the Sartell Mill," Paterson said. "The mill has not been competitive for a number of years and, despite our employees' dedicated efforts since the December 2011 shutdown of two of the facility's three paper machines, our assessment indicates that it is impossible for the mill to achieve a competitive position in today's marketplace, especially after a setback of this magnitude and duration. We will work closely with local and state officials to develop options for the future use of the mill site."

    "We know that the decision to permanently close the mill will have a significant impact on many people across this region, especially our Sartell Mill employees and their families," said Verso Senior Vice President for Manufacturing and Energy Lyle Fellows. "We continue to work with affected employees to help them access the resources needed to identify alternative employment opportunities."

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  • 08.03.2012

    Sappi Reports Results for Third Quarter Ended June 30, 2012

    Results for the third quarter ended June 2012 in line with expectations despite tough market conditions. Sappi remains focused on debt reduction, chemical cellulose expansion.

    "Operating profit excluding special items for the quarter was in line with expectations and guidance provided. Market conditions remain challenging with little visibility which impacted pricing and demand for most products.

    "However the southern Africa chemical cellulose business continued to perform strongly with good margins and volumes. The chemical cellulose conversion projects at the Ngodwana and Cloquet mills are progressing well.

    "The successful refinancing during the quarter of the expensive bonds due in 2014 will result in a substantial reduction in interest costs going forward and significantly improve Sappi's debt maturity profile.  Once-off charges related to the refinancing did, however, lead to a net loss per share for the quarter.

    "Market conditions are expected to remain generally tough, with greater uncertainty and lack of visibility.  Trading conditions are expected to be weaker than a year ago, with lower volumes for most of our products and pricing, particularly for pulp, to remain under pressure.  We believe input prices should remain generally flat and that fixed costs are well under control. 

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  • 08.03.2012

    Condé Nast Taking Brides Bimonthly, Boosts Mobile Interaction

    Brides is ratcheting back its print brand and investing more in its digital presence with a mobile-enhanced website. The 300,000-circ magazine is dropping down to a bimonthly frequency and the site will become fully mobile compatible and feature new tools and functionality to drive more engagement.
     
    The magazine's last monthly issue will be December, with a January-March issue after that and then the bimonthly schedule will kick in with the April/May issue.
     
    The site enhancements include new image galleries and more interactive tools like check-lists and countdowns as well as features that allow users to contribute and share content from web to mobile and back again. Brides.com averages about 1.2 million monthly uniques, according to the company.

    The digital build-out fits with Condé's digitally-focused strategic plan, and Brides publisher Michelle Myers says that the combined editorial and business oversight of both digital print properties is a helpful structure to push through the dual platform changes.
     
    In a recent interview with Folio:, Condé Nast CTO Joe Simon noted the company's push to re-integrate digital and print initiatives under a combined team structure.

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  • 08.03.2012

    Mercer International Inc. Reports 2012 Second Quarter Results

    Mercer International Inc. today reported results for the second quarter ended June 30, 2012. Operating EBITDA* in the second quarter of 2012 was €32.9 million ($42.2 million), compared to €50.1 million ($72.1 million) in the second quarter of 2011 and €30.6 million ($40.1 million) in the first quarter of 2012.

    For the second quarter of 2012, we had net income of €1.5 million ($1.9 million), or €0.03 ($0.04) per basic share, compared to net income of €14.4 million ($20.7 million), or €0.32 ($0.46) per basic share, in the second quarter of 2011 and net income of €1.2 million ($1.6 million), or €0.02 ($0.03) per basic share, for the first quarter of 2012.

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  • 08.03.2012

    Harte-Hanks Reports Second Quarter Results

    Harte-Hanks, Inc. today reported second quarter 2012 diluted loss per share of ($1.74) on revenues of $199.1 million. These results compare to diluted earnings per share of $0.15 on $213.0 million in revenues for the second quarter of 2011.

    The financial results reflect the previously announced non-cash income statement charge of $165.3 million for the impairment of Shoppers goodwill and other intangibles and $2.2 million for restructuring charges. Excluding these items, 2012 second quarter diluted income per share was $0.13.

    For the three months ended June 30, 2012, the company generated free cash flow (defined below) of $11.1 million, an increase from $8.8 million in the prior year’s second quarter. Capital expenditures for the quarter were $2.6 million compared to $7.0 million in the prior year’s second quarter.

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  • 08.03.2012

    CQ Roll Call To Consolidate Brands Into One Print Daily

    The Economist Group’s CQ Roll Call business, which produces a variety of publications that includes CQ Weekly, CQ Today and Roll Call, is undergoing a series of changes, most notably with the consolidation of its brand into one daily print publication and laying off up to 30 employees.

    "When the companies merged in 2009, we brought together two long standing brands—CQ and Roll Call,” a spokesperson for The Economist Group’s CQ Roll Call business tells AD. “One (is) known for serious policy content and the other for politics and commentary. CQ Roll Call is uniquely positioned to cover both and as we realign our resources, we are consolidating the newsroom and creating efficiencies in our delivery of news and information, by moving towards publishing one print daily."

    The spokesperson from CQ Roll Call would not confirm the number of individuals let go, or the areas of the company that saw cuts. According to news reports from FishBowl D.C., 30 employees in the last two weeks have been laid off. It is unclear whether more staffing changes will be had for the brand going forward in 2012 amid its consolidation, and how the present cuts might affect business in its present state.

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  • 08.03.2012

    Boise Inc. Reports Financial Results for Second Quarter 2012

    Boise Inc. today reported net income of $13.7 million, or $0.14 per diluted share, for second quarter 2012, compared with net income of $11.9 million, or $0.11 per diluted share, for the same period in 2011. EBITDA was $75.1 million for second quarter 2012, compared with $70.5 million for second quarter 2011.

    Packaging segment sales for second quarter 2012 were $284.8 million, an increase of $41.5 million, or 17%, compared with second quarter 2011. The acquisition of Hexacomb on December 1, 2011, increased our corrugated product sales volumes, compared with the prior period. Additionally, corrugated sales volumes for our other operations also increased.

    Paper segment sales for second quarter 2012 were $363.3 million, a decrease of $7.8 million, or 2%, compared with second quarter 2011, due to decreased net selling prices and volumes of market pulp. Net selling prices of uncoated freesheet decreased slightly and volumes remained flat, compared with second quarter 2011. Paper segment sales decreased $19.1 million, or 5%, compared with first quarter 2012, due to decreased volumes and prices of uncoated freesheet.

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  • 08.03.2012

    AAA Fuel Gage & Exchange Rates

    AAA’s Fuel Gage Report as of 8/03/12
    National Unleaded Regular:
    Current Average - $3.567/gallon
    Month Ago Average - $3.336/gallon
    Year Ago Average - $3.701/gallon
    Highest Recorded Average - $4.114/gallon on 7/17/08
    Diesel:
    Current Average - $3.794/gallon
    Month Ago Average - $3.654/gallon
    Year Ago Average - $3.964/gallon
    Highest Recorded Average - $4.845/gallon on 7/17/08

    Current Exchange Rates as of 8/02/12
    American Dollar to Canadian Dollar = 0.997884 (120 day high - 1.01905 on April 26, 2012; low 0.961252 on June 5, 2012)
    American Dollar to Chinese Yuan = 0.156896 (120 day high – 0.159363 on May 2, 2012; low 0.156521 on July 13, 2012)
    American Dollar to Euro = 1.227888 (120 day high - 1.3454 on February 28, 2012; low 1.2089 on July 24, 2012)
    American Dollar to Japanese Yen = 0.012773 (120 day high – 0.0128855 on February 13, 2012; low 0.0119026 on March 21, 2012)
    American Dollar to Mexican Peso = 0.075394 (120 day high – 0.0793808 on March 14, 2012; low 0.0691788 on June 1, 2012)

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  • 08.03.2012

    Oil Rises From Three-Week Low on Forecasts U.S. Hiring Increased

    Oil rebounded from the lowest close in almost three weeks in New York amid forecasts that hiring increased in the U.S., the world’s largest consumer of crude.

    Futures rose as much as 1.2 percent, trimming a second weekly decline. Employers probably added 100,000 workers in July after an 80,000 gain in June, according to a Bloomberg News survey ahead of government data today. Tropical Storm Ernesto weakened as it moved west into the Caribbean, the U.S. National Hurricane Center said. Oil fell 2 percent yesterday after the European Central Bank failed to assure investors it was ready to take immediate steps to support the economy.

    “Oil markets are getting a bit tighter, and demand should be picking up,” said Hannes Loacker, an analyst at Raiffeisen Bank International AG (RBI) in Vienna, who predicts prices in London will struggle to pass $110 a barrel. “Without doubt, the U.S. recovery and the Chinese economy are the two most important factors on the demand side, more so than Europe.”

    Crude for September delivery increased as much as $1.06 a barrel to $88.19 a barrel in electronic trading on the New York Mercantile Exchange and was at $88.17 at 10:29 a.m. London time. The contract yesterday fell $1.78 to $87.13, the lowest close since July 13.

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  • 08.03.2012

    Aeropostale Provides Business Update

    Aeropostale, Inc., a mall-based specialty retailer of casual apparel for young women and men, today announced updated expectations for the second quarter.

    For the second quarter of fiscal 2012, net sales increased 4% to $485.3 million, from $468.2 million in the year ago period. Comparable sales, including the e-commerce channel, for the second quarter were essentially flat, compared to a 12% decrease last year.  Same store sales, excluding the e-commerce channel, for the second quarter decreased 1%, compared to a 14% decrease last year. 

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  • 08.03.2012

    June 2012 US Commercial Printing Shipments Up +$139 Million Compared to 2011

    The US Commerce Department report of US commercial printing shipments for June 2012 was $6.85 billion, up +$139 million compared to last year (+2.1%). On an inflation-adjusted basis, shipments were up +$27 million (+0.4%).
     
    For the first half of 2012 shipments were $40.1 billion, down -$400 million (-1.2%) compared to the same period last year, and down -$1.4 million (-3.4%) on an inflation-adjusted basis.

    Comparing the 12-month period of July 2011 to June 2012 to the similar period of the year before, current dollar shipments were down -1.5% and -4.3% on an inflation adjusted basis.

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  • 08.03.2012

    Sealed Air Reports Second Quarter 2012 Results

    For second quarter 2012, Sealed Air Corporation reported sales of $2.0 billion, a 65% increase over 2011, including a 67% increase from the Diversey acquisition, a 2% increase in organic sales, and a 4% unfavorable foreign currency translation. Sales volume performance improved slightly and reflected unit volume growth in all regions except EMEA, due to a 3% volume decline in Europe. On a pro forma basis, sales decreased 4%. Excluding the unfavorable impact of foreign exchange, pro forma sales increased 1% from 2% higher price and 1% lower unit volumes.

    For the second quarter 2012, Sealed Air reported a loss of $0.07 per share after a $0.27 per share unfavorable effect from special items. This compares with reported net earnings per common share (EPS) of $0.37 in 2011. On an adjusted basis, second quarter 2012 EPS was $0.20 compared with second quarter 2011 adjusted EPS of $0.40.

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  • 08.02.2012

    Resolute Reports Preliminary Second Quarter 2012 Results

    Resolute Forest Products Inc., today reported a net loss of $20 million for the second quarter, or $(0.20) per share, on sales of $1.2 billion. This compares with net income of $61 million, or $0.63 per diluted share, on sales of $1.2 billion in the second quarter of 2011.

    Excluding $50 million of special items described below, net income for the quarter was $30 million, or $0.30 per diluted share.  Net income excluding special items for the second quarter of 2011 was $63 million, or $0.65 per diluted share, and included a $44 million income tax benefit from a tax reserve adjustment.

    "Resolute's newsprint, specialty papers and wood products segments each delivered their strongest quarterly results in recent history, more than making up for headwinds in the pulp and coated papers segments" said Richard Garneau, president and chief executive officer. "Our cost-focused strategy positions us to continually optimize our diversified asset base and generate cash even in challenging environments."

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  • 08.02.2012

    Resolute and Fibrek Complete Second Step Arrangement

    Resolute Forest Products Inc. and Fibrek Inc. announced today the completion of their previously announced second step plan of arrangement transaction (the "arrangement"), whereby Fibrek and RFP Acquisition Inc., a wholly-owned subsidiary of Resolute, have amalgamated resulting in Resolute indirectly owning 100% of the shares of Fibrek Inc. This announcement comes following the approval of the arrangement by Fibrek's shareholders on July 23, 2012 and the issuance of a final order of the Superior Court of Quebec on July 27, 2012 approving the arrangement.
     
    Fibrek has applied for its common shares to be delisted from the Toronto Stock Exchange and expects such delisting to be effective as of the close of markets on August 2, 2012. In addition, Fibrek has applied and made the required filings with the relevant Canadian securities regulatory authorities in order for Fibrek to cease to be a reporting issuer or the equivalent in the relevant Canadian provinces and territories.
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  • 08.02.2012

    Abercrombie & Fitch Provides Second Quarter 2012 Business Update

    Abercrombie & Fitch Co. today reported on the Company's performance for the quarter ended July 28, 2012.

    Net sales increased 4% to $951.4 million for the quarter, compared to net sales of $916.8 million for the fiscal quarter ended July 30, 2011. Total US sales, including direct-to-consumer sales, decreased 5% to $648.0 million. Total international sales, including direct-to-consumer sales, increased 31% to $303.4 million. Total Company direct-to-consumer sales, including shipping and handling, increased 25% to $127.7 million.

    Comparable store sales for the quarter were down 10% relative to last year. Comparable store sales were down 5% in US stores and were down 26% in international stores. Within the quarter, comparable store sales were weakest in June.

    The Company expects gross margin rate erosion for the second quarter of approximately 100 basis points versus last year. Additionally, the Company expects inventory at cost to be up approximately 20% at the end of the second quarter versus a year ago.

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  • 08.02.2012

    KapStone Reports Record Second Quarter Results

    KapStone Paper and Packaging Corporation today reported record results for the second quarter ended June 30, 2012.
    •Net sales of $306 million up $91 million, or 43 percent, versus prior year
    •Net income of $18.4 million up 1.3 percent versus 2011
    •Adjusted EBITDA of $50 million up $6 million, or 13 percent, versus prior year
    •Diluted EPS of $0.39 up $0.01 per share, or 3 percent, versus 2011
    •Adjusted diluted EPS of $0.42 up $0.03 per share, or 8 percent, versus prior year
    •Unfavorable foreign exchange rates impacted EPS by $0.03 versus prior year
    •$50 million voluntary loan repayment made in second quarter of 2012
     
    Second Quarter Operating Highlights

    Consolidated net sales of $306.3 million in the second quarter of 2012 increased by $91.5 million, or 42.6 percent compared to $214.8 million for the 2011 second quarter. The increase is primarily due to the USC acquisition which added $97.2 million of additional revenue based on selling 1.6 billion square feet of corrugated products compared to none in 2011. In 2012's second quarter, 324,000 tons of paper were sold compared to 329,000 tons a year earlier. The Company's average selling price decreased by $10 primarily from lower export containerboard prices which have been recovering since bottoming out in March.

    Operating income of $32.5 million for the 2012 second quarter increased by $1.8 million, or 6.0 percent, compared to the 2011 second quarter. The improved financial performance primarily reflect benefits from the acquisition partially offset by lower selling prices, lower sales volume, unfavorable foreign exchange rates, inflation on input costs and acquisition start up expenses.

    Unfavorable foreign exchange rates resulting from the strengthening of the U.S. dollar compared to the euro reduced diluted earnings per share by approximately $0.03.

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  • 08.02.2012

    Tronox Reports Second Quarter 2012 Financial Results

    Tronox Limited today reported revenue of $428.9 million and Adjusted EBITDA of $146.2 million for the second quarter of 2012.  Revenue in the second quarter was essentially level to that in the prior-year quarter and includes $30.5 million in mineral ore sales for the two-week period following the closing of the Exxaro Mineral Sands acquisition on June 15, 2012.  Adjusted EBITDA of $146.2 million in the second quarter, including $23.3 million from acquired businesses (100 percent of the South Africa mineral sands business formerly owned by Exxaro and 50 percent of the Tiwest mineral sands and pigments business formerly owned by Exxaro), increased 22 percent from $119.6 million in the prior-year quarter.

    "In our mineral sands segment for second half of 2012, we anticipate feedstock sales volumes will remain strong and prices will be significantly higher compared to the second half last year.  This strong performance is expected despite zircon sales forecasted to be at approximately half the year-ago levels.  As the largest vertically integrated player in our industry, Tronox now benefits from the same rising ore prices that non-integrated titanium dioxide producers will face as advantaged ore contracts expire.  We believe that we are built to optimize market swings on either side of the supply chain and are well positioned to thrive in changing market conditions," Casey said.

    "In the first half of 2012, we saw a softening of sales volumes in our pigments segment compared to very strong volumes a year ago due to simultaneous market weakness in China, Europe and North America.  While we are encouraged by signs of recovery in U.S. housing and increasingly stimulative national policy in China, we are conservatively forecasting pigment sales volumes to be level and modestly lower global average pigment selling prices in the second half 2012 as compared to the first half 2012.

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