*Net Sales — Net sales were $706 million in the first quarter of 2021, down 14% from the same period in 2020, primarily due to the economic impact from the COVID-19 pandemic, and ongoing print industry volume pressures. The first quarter decline represents a third quarter of sequential revenue improvement during the pandemic, as compared to a 21% decline in the fourth quarter of 2020, a 28% decline in the third quarter of 2020 and a 38% decline in the second quarter of 2020. *Net Earnings (Loss) From Continuing Operations — Net earnings from continuing operations were $10 million or $0.19 diluted earnings per share in the first quarter of 2021, an increase of $19 million compared to the first quarter of 2020, which recorded a net loss of $9 million or $0.17 diluted loss per share. *Net Cash Provided by Operating Activities — Net cash provided by operating activities increased by $28 million to $73 million in the first quarter of 2021, as compared to $45 million in the same period in 2020, primarily due to improvements in working capital.
Stora Enso is today launching its latest lignin-based innovation, NeoLigno® by Stora Enso. NeoLigno is a fully bio-based binder system without formaldehyde and isocyanates, thus, providing healthier indoor and working environments. Hazardous chemicals aren't always visible to the naked eye, yet they may be in homes or products used every day. Stora Enso is on a mission to replace such products with renewable materials. The new binder NeoLigno demonstrates the unique properties and potential of lignin. Lignin is nature's second most common macromolecule after cellulose. It is found in all plants and makes up to a third of the composition of wood. Lignin is a renewable raw material free from toxic substances and fully traceable to its area of origin. NeoLigno is a bio-based, high-performing alternative for industries currently using fossil-based binders or hazardous chemicals. Initial target applications for NeoLigno are in particleboards and insulation materials used in the building and construction industry.
Gap Inc. has entered into an agreement to sell Intermix, a leading omni-channel fashion boutique for customers seeking a highly curated shopping experience, to private equity firm Altamont Capital Partners. Altamont Capital Partners intends to acquire the entire Intermix business, including all store leases, e-commerce and assets. This transaction is another milestone as Gap Inc. continues to execute against its Power Plan 2023, with acute focus on growing its purpose-led, billion-dollar lifestyle brands by leveraging the power of its portfolio and its platform. In April, Gap Inc. completed a transaction to sell Janie and Jack, a leader in premium children’s apparel and accessories, to Go Global Retail.
First Quarter 2021 Summary *Total reported sales of $2.4 billion, down 13% versus last year *GAAP operating income of $55 million and net income of $53 million, or $0.95 per diluted share, versus $80 million and $45 million, or $0.84 per diluted share, respectively in the prior year *Operating cash flow of $86 million and adjusted free cash flow of $79 million, versus $188 million and $173 million, respectively in prior year *$1.7 billion of total available liquidity including $753 million in cash and cash equivalents
The ODP Corporation announced that its Board of Directors has unanimously approved a plan to pursue a separation of the Company into two independent, publicly traded companies, each with a unique and highly focused strategy and investment profile: *ODP – a leading provider of retail consumer and small business products and services distributed via approximately 1,100 Office Depot and OfficeMax retail locations and an award-winning eCommerce presence, officedepot.com; and *“NewCo” – a leading B2B solutions provider (ODP’s Business Solutions Division contract business, Grand & Toy and ODP’s independent regional office supply distribution businesses) serving small, medium and enterprise level companies. NewCo will also own the Company’s newly formed B2B digital platform technology business, including BuyerQuest, as well as the Company’s global sourcing office and its other sourcing, supply chain and logistics assets.
The New York Times Company announced first-quarter 2021 diluted earnings per share from continuing operations of $.24 compared with $.20 in the same period of 2020. Operating profit increased to $51.7 million in the first quarter of 2021 from $27.3 million in the same period of 2020, as higher digital-only subscription revenues and, to a lesser extent, higher digital advertising revenues more than offset lower print advertising, print subscription and other revenues.
With the shrunken American book printing industry enjoying a revival, Wisconsin's Worzalla, an employee-owned book printer specializing in high-quality children’s books, cookbooks, and hardcovers that services many of the country's largest publishers, has begun the final phase of a three-part effort to expand its printing capacity. The last round of upgrades features a $10 million investment that covers the addition of a new casemaker with a wide range of casemaking applications and a non-stop case feeder for cutting and making covers of books. Worzalla has also purchased a Goss Sunday 2000 32-page Double Web Press that provides a broad range of print formats and page configurations. Installation of the press is expected to be complete later this year, and is projected to increase Worzalla’s large book format capacity by 30%. Over the last several years, the company has spent more than $30 million on new manufacturing equipment. In addition, Worzalla is looking to hire 40 new employees for a range of positions.
Highlights - Nine Months Ended March 31, 2021 •GAAP Net Income of $684 million, up 58%; GAAP earnings per share (EPS) of 43.8 cents per share, up 63%; •$55 million Bemis cost synergies year to date; expect approximately $70 million in FY21 and well positioned todeliver at least $180 million by end of fiscal 2022; •Quarterly dividend higher than this quarter last year at 11.75 cents per share; •Approximately 2% of outstanding shares repurchased year to date;
Metsä Group and forest owners planted 270 million seedlings in Finnish forests between 2010 and 2020. This summer, the figure will increase by more than 35 million seedlings. Metsä Group supplies forest owners with native tree species that occur naturally in Finland. Under the Finnish Forest Act, a new forest must always be established after felling. This can be done through natural regeneration, or by sowing seeds or planting seedlings. Planting is the fastest and surest way to create a new forest. To secure biodiversity, individual trees from the previous generation are always left in the forest. “We supply forest owners with species that occur naturally in Finland – pine, spruce and silver birch – for use in forest regeneration. This helps preserve forest nature in the state to which our native species have adapted,” says Teppo Oijala, Metsä Group’s Forest Manager. In the decade between 2010 and 2020, Metsä Group supplied forest owners with a total of 270 million seedlings and 9,000 kilograms of pine seeds.
*Operating income was $55 million, $67 million favorable to the comparable period in 2020, driven by higher prices for lumber and commodity High Purity Cellulose along with stronger cellulose specialties volumes *Driven by higher book income tax expense, first quarter loss from continuing operations was $27 million, $2 million unfavorable to the comparable period in 2020; expect minimal cash taxes in 2021 *First quarter Adjusted EBITDA from continuing operations of $91 million was up $64 million from the comparable quarter in 2020 primarily driven by higher lumber and High Purity Cellulose commodity prices along with stronger cellulose specialties volumes *Generated $21 million of Free Cash Flow for the quarter driven by higher prices partially offset by seasonal working capital build; expect $50 million from cash tax refunds during the next 12 months *Announced sale of lumber and newsprint assets for approximately $214 million, subject to inventory value adjustment, with a closing expected in the second half of the year, focusing the Company on its core High Purity Cellulose business, and the opportunity to further leverage sustainable, bio-based solutions