RockTenn reports a rise in Q3 2013 net sales

24 July 2013 (Last Updated July 24th, 2013 18:30)

RockTenn has reported net sales of $2.4bn for the third quarter of fiscal 2013, a $145m increase compared to the same period of fiscal 2012.

RockTenn has reported net sales of $2.4bn for the third quarter of fiscal 2013, a $145m increase compared to the same period of fiscal 2012.

The company's corrugated packaging shipments increased around 102,000t compared to the prior year, while consumer packaging reached 363,000t, a 15,000t increase.

Net sales of corrugated packaging increased $174m to $1.7bn and income increased $123m to $196m in the quarter, compared to the prior year.

Consumer packaging net sales increased $16m and income declined $8m, due to lower selling prices and higher virgin fibre and energy costs more than offset higher volumes and lower recycled fibre costs.

Recycling net sales decreased $64m over the prior year's third quarter to $275m, primarily as a result of lower volume and pricing.

RockTenn chairman and chief executive officer James Rubright said that a 93% increase in the company's quarterly adjusted earnings over the preceding quarter reflect the improvements it is making in operating its businesses and executing capital projects, sales and pricing strategy.

"As these broadly based initiatives continue to strengthen and as we further implement the current pricing initiatives in corrugated packaging and consumer paperboard grades, our earnings for the fourth quarter and the next fiscal year should also be sharply higher than our earnings for the comparable prior year periods," Rubright added.

US-based paper and packaging manufacturer RockTenn operates locations in the US, Canada, Mexico, Chile, Argentina and China.