Buckeye Technologies Profit Falls, But Tops Estimates - Update

(RTTNews) - Specialty fiber maker Buckeye Technologies Inc. (BKI), Monday reported a lower fourth-quarter profit, hurt by a four percent drop in sales as well as charges related to its pending merger with Georgia Pacific LLC. However, both quarterly earnings and sales for the quarter topped Wall Street estimates.

The Memphis, Tennessee-based company reported fourth-quarter net income of $18 million or $0.45 per share, compared to $28 million or $0.71 per share last year.

Results for the quarter include $5 million of charges mainly for its pending merger with Georgia-Pacific and adjustments related to the CBC fuel tax credit.

Excluding items, adjusted earnings for the quarter were $23 million or $0.58 per share, compared with $26 million or $0.66 per share a year earlier. On average, three analysts polled by Thomson Reuters expected earnings of $0.56 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the quarter slid to $216 million from $225 million a year ago, but topped analysts' expectations of $197.69 million.

The company said while shipment volume was up 9 percent, this was offset by unfavorable mix and lower selling prices for specialty fibers.

In April, Buckeye agreed to be acquired by privately-held pulp and paper company Georgia-Pacific LLC for $1.5 billion.

The company's stock closed Monday at $37.26, down 0.16%, on a volume of 130 thousand shares on the NYSE.