Displaying items by tag: buckeye

Buckeye Technologies Inc. has announced that it has signed a definitive agreement to sell the assets and ongoing operations of its Merfin Systems converting business to National Tissue Company, LLC. Merfin Systems, located in King, North Carolina, is a converter of towels, tissue and napkins which it sells along with proprietary paper product dispensers into the away from home market. It sells these products through selected distributors concentrated in the eastern U.S. and Canada. National Tissue is a privately owned converter located in Cudahy, Wisconsin. National Tissue markets and sells its broad product line primarily through small and mid-sized distributors located in the Midwest.

National Tissue’s President, Mike Graverson, said, “Merfin is an excellent fit and will complement National Tissue’s core business. Merfin brings their proprietary dispensing systems and other product extensions to our basic offering. Adding a second and expandable operating location is a big step in our strategic roadmap.”

Buckeye’s Chairman and Chief Executive Officer John Crowe said, “We are pleased that our employees in King are now partnered with a strategic industry player. While it has not been a core business for Buckeye, we have been pleased with our 15 year ownership of Merfin Systems. We believe this opens up new horizons for this fine company, and enables Buckeye to deploy the proceeds into its strategic operations.”

“We expect to incur non-cash goodwill and fixed asset impairment charges of about $4 million in the October-December 2011 quarter. The sale along with associated liquidation of working capital is expected to generate approximately $6 million in cash.”

Buckeye, a leading manufacturer and marketer of specialty fibers and nonwoven materials, is headquartered in Memphis, Tennessee, USA. The Company currently operates facilities in the United States, Germany, Canada, and Brazil. Its products are sold worldwide to makers of consumer and industrial goods.

Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws that involve risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting the Company’s operations, financing, markets, products, services and prices, and other factors. For further information on factors which could impact the Company and the statements contained herein, please refer to public filings with the Securities and Exchange Commission.

Source: Buckeye Technologies Inc.

Uncompetitive cost position necessitates closure

Potential generation of a $20 million cash benefit

Redeploy resources to higher return business opportunities

Expect $2.4 million restructuring costs and non-cash impairment charge of $49 million

Buckeye Technologies Inc. has announced the closure of its Americana, Brazil cotton linter pulp production line. The company will work closely with its customers to continue to meet their needs from its Memphis, Tennesseefacility.

Buckeye's Chairman and Chief Executive Officer John Crowe said, “This closure has become necessary due to the facility’s uncompetitive cost position for the products it makes. This is primarily driven by the high cost of its cotton linter raw material supply. It is unfortunate that this closure will result in the termination of employment for approximately 60 dedicated employees. We have owned and operated the facility since 2000, and we value and appreciate the many contributions of the organization over the past 12 years. Buckeye will continue to operate the waste water treatment facility for the shared industrial site while we continue discussions with interested parties for the sale of the facility.

We expect to incur about $2.4 million in restructuring expenses in calendar 2012 and a non-cash asset impairment charge of about $49 million in the October-December 2011 quarter. The closure is expected to generate an approximate $20 million cash benefit, primarily due to tax benefits related to the investment loss, assuming we are able to utilize all of our potential cellulosic biofuel credits by June 2016. Any additional cash benefit will be dependent on the final outcome of the facility sale process.”

Buckeye, a leading manufacturer and marketer of specialty fibers and nonwoven materials, is headquartered in Memphis, Tennessee, USA. The Company currently operates facilities in the United States, Germany, Canada, and Brazil. Its products are sold worldwide to makers of consumer and industrial goods.

Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws that involve risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting the Company’s operations, financing, markets, products, services and prices, and other factors. For further information on factors which could impact the Company and the statements contained herein, please refer to public filings with the Securities and Exchange Commission.

Source: Buckeye Technologies Inc.

Buckeye Technologies Inc. (NYSE:BKI) announced the release today of its 2011 Sustainability Report. This report (which summarizes calendar year 2010 results) highlights continuing efforts on reducing fossil fuels, water, solid waste, and air emissions. Buckeye has reduced its Greenhouse Gas emissions (from fossil fuels and purchased electricity) by over 5% per ton of production since 2007, while generating 80% of its total energy needs from renewable biomass.

In addition, significant reductions of water used daily were achieved (down 7% since 2007) while reducing landfill wastes by 18% since 2007. The report also shares information about Buckeye's social impacts, including the impressive response to a renewed corporate-wide commitment to safety, reducing the Total Incidence Rate from 3.5 to 2.5 during the reporting period, with an additional reduction to 1.8 by the end of June.

John Crowe, Chairman and CEO, emphasized that "Buckeye has embarked on a sustainability strategy that embraces the importance of protecting the environment and resources for future generations while leveraging long-term business and shareholder value."

For more information about Buckeye Technologies and its sustainability efforts, and for a downloadable copy of the 2011 Sustainability Report, please visit our website at www.bkitech.com.

Buckeye, a leading manufacturer and marketer of specialty fibers and nonwoven materials, is headquartered in Memphis, Tennessee, USA. The Company currently operates facilities in the United States, Germany, Canada, and Brazil. Its products are sold worldwide to makers of consumer and industrial goods.


SOURCE: Buckeye Technologies Inc.

Improves capacity utilization, profitability and return on invested capital
Expect to generate $30 million cash benefit from closure
Expect non-cash impairment charge of $15 million and $5 million restructuring costs

 

Buckeye Technologies Inc. has announced plans to close its Delta, B.C., Canada airlaid nonwovens facility by the end of calendar 2012. The Company will work closely with its customers to continue to meet their needs by sourcing products currently produced at Delta from its facilities in Gaston County, N.C. and Steinfurt, Germany.

 

Buckeye Chairman John B. Crowe said, "This closure has become necessary due to several factors including unfavorable site location relative to customers and raw material suppliers, a strong Canadian dollar, and low capacity utilization. It is unfortunate that this closure will result in the eventual termination of employment for approximately 95 dedicated employees. We have owned and operated the Delta facility since 1997 and we value and appreciate the many contributions of the organization over the past 14 years. In the fall of 2010, we consolidated our production from a two machine operation to one airlaid machine in an attempt to improve the profitability of the site. Even after this consolidation, which did improve margins, the plant's forecasted financial performance remains at an unacceptable level.

 

"We are making this announcement now to allow adequate time to address employee and customer needs. This 18 month period will allow us time to implement changes that may be needed at Gaston and Steinfurt to meet the needs of our current Delta customers. This closure and consolidation of business will improve capacity utilization, profitability and return on invested capital for our Nonwovens business. We expect to incur a non-cash asset impairment charge of about $15 million and $5 million in restructuring expenses between now and December 31, 2012. The closure is expected to generate about $30 million in cash over the next 18 months, primarily through the sale of land and buildings and a net reduction in working capital. From now until the end of 2012, we will focus on meeting the needs of our customers and on maximizing cash flow generation at the site."

 

Buckeye, a leading manufacturer and marketer of specialty fibers and nonwoven materials, is headquartered in Memphis, Tennessee, USA. The Company currently operates facilities in the United States, Germany, Canada, and Brazil. Its products are sold worldwide to makers of consumer and industrial goods.

 

Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws that involve risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting the Company's operations, financing, markets, products, services and prices, and other factors.For further information on factors which could impact the Company and the statements contained herein, please refer to public filings with the Securities and Exchange Commission.

 

SOURCE: Buckeye Technologies Inc.

Growing customer demand exceeds supply
Focus on technically demanding high-end niches
Returns above cost of capital

Buckeye Technologies Inc.  announced that its Board of Directors has approved funding for a comprehensive evaluation of our Florida mill's potential to further increase its high-purity specialty wood pulp capacity. Buckeye's high-end specialty wood pulp grades include ethers, high strength viscose, filtration and acetate, which are used in the production of food and pharmaceutical products, food casings, tire cord, filtration media and acetate tow. The global demand for these products is growing and Buckeye has a proven history of producing these technically demanding grades. Buckeye's specialty wood pulp production continues to be sold out and this potential expansion would help meet growing customer demand in these high-end applications.

 

Buckeye's Chairman and Chief Executive Officer John Crowe said, "Currently the lead option in this evaluation is to increase our Florida mill's high-end specialty capacity by 30,000 metric tons with a target startup date at the end of 2012. The overall capacity of the mill would remain at its current 465,000 ton per year level, but the mix of high-end specialty production would increase. In addition to the mix improvements, we plan to further enhance the performance attributes of the fluff pulp produced at our mill. We expect this project would generate returns significantly above our cost of capital. We believe this option could provide excellent value to our customers and our shareholders. We intend to complete our evaluation and make a final decision on the potential expansion in August 2011."

 

SOURCE: Buckeye Technologies Inc.

Buckeye Technologies Inc. (NYSE:BKI) today announced that its Board of Directors has declared its first regular quarterly cash dividend in the amount of $0.04 per common share payable on September 15, 2010 to shareholders of record as of the close of business on August 16, 2010.

Chairman and Chief Executive Officer John B. Crowe, said "We are pleased to be able to initiate a regular dividend for the first time in the Company's history. As we have discussed in recent quarterly earnings calls, Buckeye is now well positioned to take a more balanced approach in its allocation of capital as a result of the success we have had over the last several years in reducing our debt and growing our cash flow. In July, we have reduced our total debt well below the bottom end of our target debt range of $200 - $250 million. In addition, this fall we will complete the first phase of our Foley energy independence project and expect to begin realizing savings from this project in the first quarter of calendar 2011. The dividend amounts to approximately $6.5 million on an annual basis, which represents a payout ratio based on adjusted fiscal 2010 net income (excluding special items) of 18%. This in essence is cash flow that was formerly used to reduce our debt and pay our interest expense and now will be used to return cash to shareholders."

Mr. Crowe continued, "Our objectives for returning cash to shareholders in the form of dividends are to increase shareholder returns and to broaden our shareholder base. We expect that Buckeye will continue to generate cash flow from operations sufficient to pay this dividend and grow it over time while also continuing to invest in high-return projects and growth opportunities. Repurchasing shares continues to be another option, subject to market conditions and bond covenant restrictions. Our objective with share repurchases would be to increase shareholder value by generating returns greater than our cost of capital. Currently, we have authorization to repurchase 5.6 million shares, and we would anticipate that any stock repurchases would be made from time to time on an opportunistic basis through open market purchases."

Buckeye, a leading manufacturer and marketer of specialty fibers and nonwoven materials, is headquartered in Memphis, Tennessee, USA. The Company currently operates facilities in the United States, Germany, Canada, and Brazil. Its products are sold worldwide to makers of consumer and industrial goods.

Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws and are intended to qualify for the Safe Harbor from liability established by the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" generally can be identified by the use of forward-looking terminology such as "assumptions," "target," "guidance," "outlook," "plans," "projection," "may," "will," "would," "expect," "intend," "estimate," "anticipate," "believe," "potential," or "continue (or the negative or other derivatives of each of these terms or similar terminology). The "forward-looking statements" include, without limitation, statements regarding the Company's intention and ability to generate cash flow to pay dividends and repurchase stock in the future, the completion of the Foley energy independence project and expected savings from that project. These statements are based on management's estimates and assumptions with respect to future events and financial performance and are believed to be reasonable, though are inherently uncertain and difficult to predict.Actual results could differ materially from those projected as a result of certain factors, including but not limited to economic, competitive, governmental, and technological factors affecting the Company's operations, financing, markets, products, services and prices, and other factors.For further information on factors which could affect the Company and the statements contained herein, please refer to the Company's Annual Report on Form 10-K and other periodic filings that it makes from time to time with the Securities and Exchange Commission.

SOURCE: Buckeye Technologies Inc.

Buckeye Technologies Inc.
Steve Dean, Senior Vice President
and Chief Financial Officer, 901-320-8352
or
Investor Relations:
Daryn Abercrombie, 901-320-8908
Website: www.bkitech.com

Buckeye Technologies Inc.announced that its Foley Plant in Perry, Florida, which manufactures specialty wood cellulose and fluff pulp, is back in operation following a power failure and electrical surge that occurred last Thursday, June 17. The power failure was triggered by a malfunction in a main incoming electrical line from a power provider and caused an unplanned complete shutdown of the facility that damaged numerous pieces of equipment. Purchased power has been fully restored to the facility, and one of the plant's two production lines resumed operation at reduced rates on Sunday. Company officials are targeting for the second line to resume operation by Wednesday.

Buckeye Chairman and CEO John B. Crowe said, "We appreciate the efforts of our employees and contractors who literally have worked around the clock in a safe manner since Thursday's power failure and surge to test motors and other equipment, to identify the damaged equipment and then to replace it. Replacement equipment has been ordered and shipped in on an emergency basis. We will be working during the week to minimize the impact of this event on our customers. The production of the Foley Plant remains sold out, and our highest priority is to continue safely returning the plant to full capacity in compliance with our environmental permits so that we can meet our customers' needs."

The Company indicated that it presently is unable to fully quantify the financial impact of the event. However, depending on the timing of returning to full production, the Company estimates that the financial impact of the outage, excluding the effect of any insurance proceeds, could be in the range of a $4 to $5 million reduction in pretax operating income for the quarter ending June 30. This would result in earnings in the range of 24 to 27 cents per share for the quarter. The Company reported that it has property loss and business interruption insurance with a single $2 million deductible and has received a preliminary report from its insurance broker that the event is a covered loss.

Buckeye, a leading manufacturer and marketer of specialty fibers and nonwoven materials, is headquartered in Memphis, Tennessee, USA. The Company currently operates facilities in the United States, Germany, Canada, and Brazil. Its products are sold worldwide to makers of consumer and industrial goods.

This press release contains forward-looking statements within the meaning of the federal securities laws and is intended to qualify for the Safe Harbor from liability established by the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" generally can be identified by the use of forward-looking terminology such as "assumptions," "target," "guidance," "outlook," "plans," "projection," "may," "will," "would," "expect," "intend," "estimate," "anticipate," "believe," "potential," or "continue (or the negative or other derivatives of each of these terms or similar terminology). The "forward-looking statements" include, without limitation, statements regarding the expectation for returning the Foley plant to full operation.These statements are based on management's estimates and assumptions with respect to future events and financial performance and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results could differ materially from those projected as a result of certain factors. A discussion of factors that could cause results to vary is included in the Company's Annual Report on Form 10-K and other period filings with the Securities and Exchange Commission.

SOURCE: Buckeye Technologies Inc.

Buckeye Technologies Inc. has scheduled a conference call for Wednesday, April 28, 2010 at 10:00 a.m. Central (11:00 Eastern) to discuss third quarter 2010 results.

All interested parties are invited to listen to the call live or tape delayed via the website www.streetevents.com or via the Company's website homepage at www.bkitech.com. Supplemental material for this call will be available on these websites. The replay will be archived on these websites through May 28, 2010.

In addition, persons interested in listening by telephone may dial in at (800) 967-7138within the United States. International callers should dial(719) 325-2306. Participants should call no later than 9:50 a.m. CT.

To listen to the telephone replay of the call, dial (888) 203-1112 or (719) 457-0820. The passcode is 7646143. This replay will be available until midnight May 12, 2010.

A press release will be issued via Business Wire after the market closes on April 27. If you do not receive a copy of this release, please contact Shirley Spears at (901) 320-8125.

SOURCE: Buckeye Technologies Inc.

Buckeye Technologies Inc.
Steve Dean, 901-320-8352
Sr. Vice President and Chief Financial Officer
or
Investor Relations:
Daryn Abercrombie, 901-320-8908
www.bkitech.com