RockTenn reports 4Q net sales of $2,353.8 million
Nov 02, 2012. RockTenn reported earnings for the fiscal year ended September 30, 2012 of $3.45 per diluted share and adjusted earnings of $4.48 per diluted share and for the quarter ended September 30, 2012 of $1.14 per diluted share and adjusted earnings of $1.39 per diluted share. Net sales of $2,353.8 million for the 4Q fiscal 2012 decreased $109.7 million compared to the 4Q fiscal 2011.
Nov 02, 2012. /Lesprom Network/. RockTenn reported earnings for the fiscal year ended September 30, 2012 of $3.45 per diluted share and adjusted earnings of $4.48 per diluted share and for the quarter ended September 30, 2012 of $1.14 per diluted share and adjusted earnings of $1.39 per diluted share. Net sales of $2,353.8 million for the 4Q fiscal 2012 decreased $109.7 million compared to the 4Q fiscal 2011, as the company said in the press release received by Lesprom Network.
RockTenn Chairman and CEO James A. Rubright stated, “We are pleased with the earnings we recorded in our fourth fiscal quarter, which are up strongly over the 3Q despite the continued headwinds of the slow progress of the domestic economic recovery. During the fourth fiscal quarter, we implemented a $50 per ton increase in domestic containerboard and we are following that with price increases in boxes and sheets. Given our contractual arrangements, we expect that by the end of the March quarter we will be realizing most of the anticipated benefit of those increases, which will be partially offset by lower prices in our consumer segment and higher commodity input costs.”
Segment income, adjusted to eliminate $0.2 million of pre-tax acquisition inventory step-up, was $208.8 million down $32.2 million or 13.4% over the prior year quarter after adjusting the prior year quarter to eliminate $4 million of pre-tax acquisition inventory step-up. Segment income in the 4Q of fiscal 2012 included $18.2 million received in connection with the termination and settlement of a paperboard supply agreement, net of legal fees in the period, that was mostly offset by $16.8 million of primarily higher start-up costs and lost production after the major capital investments at our Hodge, LA mill relative to our expectations at the beginning of the quarter.
Corrugated Packaging segment net sales decreased $29.2 million to $1,597.3 million in the 4Q of fiscal 2012 compared to the prior year quarter. Segment income decreased $40.8 million to $112.8 million in the 4Q of fiscal 2012 compared to $153.6 million in the prior year quarter after adjusting the current year quarter and prior year quarter to eliminate $0.2 million and $4 million of pre-tax acquisition inventory step-up, respectively.
The decrease is primarily related to $18.3 million of incremental maintenance outage expense compared to the prior year quarter, the impact of lower mill volumes and lower selling prices and start-up costs and lost production after the major capital investments at our Hodge, LA mill. Corrugated Packaging segment EBITDA margin was 13.7% for the 4Q of fiscal 2012.
Consumer Packaging segment net sales decreased $7.3 million in the 4Q of fiscal 2012 compared to the prior year quarter. Segment income was $98.8 million in the 4Q of fiscal 2012 compared to $82.1 million in the prior year quarter. Segment income in the 4Q fiscal 2012 included $18.2 million received in connection with the termination and settlement of a paperboard supply agreement, net of legal fees in the period. Consumer Packaging segment EBITDA margin was 18.6% for the 4Q of fiscal 2012.
Recycling segment net sales decreased $91.4 million over the prior year 4Q to $264.4 million primarily as a result of lower selling prices. Segment loss was $2.8 million in the 4Q of fiscal 2012 compared to segment income of $5.3 million in the prior year primarily as declining recycled fiber prices compressed margins.
RockTenn is one of North America's leading integrated manufacturers of corrugated and consumer packaging and recycling solutions. The Company operates locations in the United States, Canada, Mexico, Chile, Argentina and China.