Clearwater Paper adjusts down 2Q outlook
Clearwater Paper Corp. has updated its second quarter outlook to reflect operational problems at its Arkansas pulp and paperboard facility that are expected to drive down projected revenues.
The Spokane-based company is anticipating an operating margin of 6 to 7 percent, compared to the earlier announced 6 to 8 percent. Revenues should be up 3 to 4 percent from the first quarter, compared to the 3 to 5 percent announced earlier.
The Arkansas pulp mill and paper machine used more energy and chemicals during the second quarter and production dropped, according to company officials. In addition, wet weather conditions in the Southeastern United States led to higher fiber prices.
The paper machine issues appear to be resolved, but problems at the paper mill won’t be fixed until the next major maintenance at the plant, which is scheduled for March 2015, said Clearwater’s President and CEO Linda Massman. As a result, company officials are expecting $1 million in related costs per quarter through the first quarter of 2015.
T-Mobile offers ‘test drive’
SEATTLE – T-Mobile says it has a new way to further transform the way people buy mobile phones.
It’s offering people the ability to take home the latest iPhone 5S for a seven-day trial. That will let them see if they get good reception at their home and office.
The fourth-ranked mobile carrier said that industrywide, nearly half of all customers who have signed up for a wireless plan have wanted to leave their provider, and that one in 10 has quit within 30 days of making a switch. The free trial will give customers a chance to try before they buy at no cost.
The company said customers can sign up for a “test drive” online starting Monday and they’ll receive a phone in the mail a few days later.
FedEx 4th quarter profits up
DALLAS – The boom in online shopping may be hurting some store-based retailers, but it is doing wonders for FedEx Corp.
The package-delivery giant said Wednesday that its fiscal fourth-quarter profit rose sharply thanks to the growth in e-commerce, which is boosting FedEx’s ground-shipping business at a time when its core express-delivery segment is flat.
FedEx’s earnings of $2.46 per share beat Wall Street’s forecast by a dime. Revenue also topped expectations.
CEO Fred Smith said the “outstanding” fourth quarter capped a solid year and put the company in strong position for the new fiscal year, which ends in May 2015. FedEx said that it would earn between $8.50 and $9 per share in the new year. That is in line with analysts’ average expectation of $8.74, according to FactSet.
Genealogy site gets hacked
SALT LAKE CITY – Ancestry.com says the popular genealogy site was offline much of Tuesday after being hacked.
Officials at the Provo, Utah-based company said hackers on Monday afternoon fooled the site into thinking there was an inordinate amount of traffic flooding it, which crashed its server.
Company chief technology officer Scott Sorensen apologized in a statement to family history researchers for the inconvenience and said the situation was just as frustrating to the company.
KSL reports Sorensen stressed no data was compromised or mined by hackers, and the company is working to prevent similar attacks in the future.