May 04, 2009. /Lesprom Network/. Caraustar Industries Inc. was in the red in the 1Q, impacted by a drop in sales and charges for restructuring, as Atlanta Business Chronicle informed Lesprom Network. The Austell, Ga.-based recycled paperboard and packaging company posted a net loss of $4.4 million and a loss per share of 15 cents, compared with net income of $200,000 and earnings of 1 cent a share in the 1Q 2008. The results for the 1Q 2009 include $9.5 million in restructuring and impairment costs, while the results for the comparable period in 2008 include $700,000 in restructuring and impairment costs. The loss was mostly due to those increased costs, a higher pension expense of $2.3 million and higher professional fees of $1.9 million related to efforts to restructure the company's senior notes maturing on June 1. Sales dipped about 27% to $159.3 million in the 1Q. "Despite a challenging economic backdrop, the company was able to deliver solid results,” said Michael J. Keough, President and CEO of Caraustar, in an earnings release. “... Our 1Q 2009 results, however, were impacted by weaker volume, particularly in our tube and core business, as industrial production remained slow. We recouped some losses due to lower fiber costs, quarter-over-quarter. We are beginning to see margin compression as fiber costs rise and capacity utilization decreases because of declining demand." Caraustar Industries, Inc. is one of North America's largest integrated manufacturers of 100% recycled paperboard and converted paperboard products.