Boise profits down for Q4, up for full year

29 February 2012 (Last Updated February 29th, 2012 18:30)

US manufacturer of packaging and paper products Boise has reported a decline in its Q4 profit from $26.2m in 2010 to $16.3m in 2011, due to higher costs for fibre, chemicals and increased selling and distribution costs.

US manufacturer of packaging and paper products Boise has reported a decline in its Q4 profit from $26.2m in 2010 to $16.3m in 2011, due to higher costs for fibre, chemicals and increased selling and distribution costs.

For the full year, the company reported a 20% increase in profit from $62.7m in 2010 to $75.2m in 2011.

Boise president and CEO Alexander Toeldte said the past year was the company's most successful since its inception in 2008 as an outgrowth of Boise Cascade.

In the 2011 financial year, the company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) excluding special items increased by 4% to $340.2m, an growth of $14.6m from 2010.

Sales for the full year were $949.7m, up 41% or $277.8m compared to sales in 2010.

The company's packaging segment sales for the quarter rose by 39% to $251.4m, an increase of $70.9m compared to fourth quarter of 2010.

Boise said its packaging segment's EBITDA for the quarter was $46.9m, posting an increase of 22% from 2010. For the full year it went up to $159.3m, growing 54% year-on-year.

Paper segment sales for the quarter surged marginally by 2% at $359.7m, and full year sales went up by 3%, driven by higher sales volumes of uncoated freesheet.

During the quarter, paper segment EBITDA declined by 27% to $44.4m, compared to the same quarter in the previous year. For the full year it was $201.5m, a decrease of $38.1m (16%) compared to $239.6m in 2010.

Fourth quarter net sales prices for linerboard and corrugated products decreased by 3% compared to the third quarter of 2011, due to softer export markets and seasonal product mix changes.