May 04, 2007. /Lesprom Network/. Caraustar Industries, Inc. announced on May 4, 2007 that sales for the first quarter ended March 31, 2007 were $232.7 million, a decrease of 11.8% compared to sales of $263.9 million for the same quarter in 2006. Included in the first quarter 2006 sales was $22.9 million related to the company's Rittman, Ohio and Sprague, Connecticut coated recycled paperboard operations, both of which were exited in 2006. Loss from continuing operations for the first quarter of 2007 was $8.9 million, or $0.31 per share, compared to income from continuing operations of $81.6 million, or $2.82 per share for the same quarter last year. The first quarter 2007 and 2006 results included pretax restructuring and impairment costs of approximately $5.8 million and $4.8 million, or $0.13 and $0.11 per share, respectively. The first quarter 2006 also included a gain of approximately $135.2 million pretax, or $3.03 per share, related to the sale of the company's 50-% ownership interest in its Standard Gypsum, L.P. joint venture. Michael J. Keough, president and chief executive officer of Caraustar, commented, "Caraustar's operating results for the first quarter were significantly impacted by system-wide and industry volume shortfalls and a considerable increase in recovered fiber prices that took OCC (old corrugated containers) costs to a five-year peak. We announced two $50 per ton uncoated recycled boxboard price increases in March in order to recover our increased fiber costs, but there was minimal realization of these increases in the first quarter of 2007. Subsequent to the end of the quarter, fiber costs began to recede, which could jeopardize further realization of those price increases. Overall, volumes have improved since March 31, but demand continues to lag in the gypsum facing business. We have bolstered our PBL facility by selling out the mill in the month of March with both medium and liner grades, and we expect the mill to run full for the foreseeable future. Our mill system operated at 93.1% of capacity versus 96.9% for the same period a year ago. Energy costs offered some relief with per ton costs lower for the quarter by approximately $16 versus last year. "We continue to consolidate business into fewer, more efficient facilities as we did this quarter with the closing of the Lafayette, Indiana paperboard mill, the York, Pennsylvania folding carton plant and the Leyland, England tube and core plant. We incurred significant short-term restructuring and other costs to obtain future benefits. Our comprehensive initiative to reduce SG&A led to a $6.1 million reduction in costs versus the first quarter last year, and the percent of SG&A to sales declined from 13.5% to 12.6% despite the intentional contraction of the scale of the company. We also went live in January with the first modules of our ERP system, which will help us run our operations more efficiently." Caraustar, a recycled paperboard and packaging company, is one of the world's largest integrated manufacturers of converted recycled paperboard. Caraustar has developed its leadership position in the industry through diversification and integration from raw materials to finished products. Caraustar serves the four principal recycled boxboard product end-use markets: tubes, cores and composite cans; folding cartons; gypsum facing paper and specialty paperboard products.