May 02, 2008. /Lesprom.com/. Caraustar Industries announced that sales from continuing operations for the 1Q ended March 31, 2008 were $216.5 million compared to sales of $219.4 million for the same quarter in 2007. Net income from continuing operations for the 1Q 2008 was $0.2 million, or $0.01 per share, compared to a 2007 1Q loss of $9.2 million, or a loss of $0.32 per share. Michael J. Keough, president and CEO of Caraustar, commented, "Caraustar's operating results for the 1Q 2008 were significantly improved sequentially and over the same period last year, despite a challenging economic environment. Year-over-year increases in selling prices were mostly offset by increases in recovered fiber and energy. Our margin improvement was primarily the result of internal cost take-out and restructuring initiatives implemented over the preceding 12 to 24 months. Our investment in strategic capital projects over this same time frame has enabled us to provide cost effective, value-added products that have improved mix. " Caraustar's 50% owned interest in the PBL mill contributed $1.9 million in equity in income from unconsolidated affiliates in the 1Q 2008 versus $0.2 million in the 1Q 2007. Cash distributions were $3.0 million compared to zero for the same period last year. Both the increase in earnings and cash distributions were attributable to increased containerboard volume and mix, which compensated for decreased gypsum facing paper volume. The PBL mill operated at 99.3% of capacity in the 1Q 2008. Caraustar Industries, Inc. is one of North America's largest integrated manufacturers of 100% recycled paperboard and converted paperboard products.