RockTenn has reported net sales of $2.3bn for the third quarter of fiscal 2012, an increase from $921.1m during the same period of fiscal 2011, primarily owing to the acquisition of Smurfit-Stone in May 2011.
RockTenn chairman and chief executive officer James Rubright said the company’s third quarter earnings per share reflect improved performance across its business units, with encouraging results particularly in consumer segment.
"Our corrugated segment performance, while generally above our expectations, reflected approximately $10m ($.09 per share) in expense from higher than expected costs, lost production and supply chain disruption associated primarily with major capital projects at our Hodge, Louisiana mill," Rubright added.
Total containerboard and paperboard tonnes produced in the quarter were about 2.13 million tonnes, which represented an increase of about 0.9 million tonnes from the corresponding quarter in 2011, due to the Smurfit-Stone acquisition and a decrease of approximately 36,000t compared to the second quarter of fiscal 2012.
The quarterly decline was mainly due to scheduled major maintenance outages and capital projects at the company’s containerboard mills.
RockTenn’s corrugated packaging segment net sales increased from $810.7m in the same quarter of 2011 to $1.5bn in the present quarter, while the income increased to $73.4m, up from $24.6m in the corresponding quarter of 2011.
The segment’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin stood at 11.3% during the quarter.
Net sales of the consumer packaging segment increased to $49.3m, compared to the third quarter of 2011, and income rose to $83.7m from $61.1m, while the EBITDA margin was 17.1%.
Paper and packaging manufacturer in the US RockTenn operates locations in the US, Canada, Mexico, Chile, Argentina and China.