Posts tagged: Cellu Tissue
Clearwater Paper Corp. today reported first-quarter earnings, including a 41 percent increase in sales as the Spokane company melded newly-acquired Cellu Tissue Holdings Inc.'s operation into its results.
Net earnings were $5.6 million, or 47 cents per share, compared with $500,000, or four cents per share, for the 2010 quarter.
Results for both quarters were affected by tax- and pre-tax chanrges related to maintenance costs and health care reform legislation. Before allowances for taxes, interest costs, and depreciation and amortization, first-quarter earnings were $41.7 million, compared with $22.4 million for the 2010 quarter.
“As a result of the integration, we expect synergies to partially offset some of the higher pulp and transportation costs we have been experiencing in our tissue business,” said Chairman Gordon Jones, who added Clearwater would be raising tissue prices to partially offset the cost increaes.
Clearwater's purchase of Cellu Tissue closed Dec. 27.
Clearwater Paper Corp. will buy Georgia-based competitor Cellu Tissue Holdings Inc. for $502 million, the two companies announced this morning.
Spokane-based Clearwater will pay Cellu Tissue stockholders $12 per share, and assume $255 million in debt, in a deal a Clearwater statement said should increase earnings immediately.
Combined revenues are projected to be $1.9 billion.
Cellu Tissue operates 10 paper-making or conversion plants in the United States from its headquarters in Apharetta, Ga. Many make private-label tissue products like those manufactured by Clearwater, but others make coated-paper products.
Another plant makes styrofoam plates and similar products.
Cellu Tissue stock jumped 50 percent on the news, Clearwater shares traded down $1.35 to $71.32, off less than two percent.