Oct 25, 2005. /Lesprom Network/.  Wausau Paper reported on Monday a net loss for the third quarter of $9.0 million, or $0.18 per diluted share, compared to net earnings of $8.1 million, or $0.16 per diluted share, last year. Net sales rose 9% to $285.6 million, and shipments increased 7% to 229,000 tonnes.

Third-quarter operating results included after-tax charges of $13.6 million, or $0.26 per diluted share, related to the previously announced closure of printing-and-writing's sulfite pulp mill in Brokaw, Wisconsin, and an after-tax gain of $0.7 million, or $0.01 per diluted share, from the sale of timberlands.

For the first nine months, the company reported a net loss of $9.7 million, or $0.19 per diluted share, compared with net earnings of $15.3 million, or $0.29 per diluted share, during the same period in 2004. In addition to sulfite pulp mill closure charges of $0.38 per diluted share, results for the first nine months included losses of $0.15 per diluted share at the Brainerd, Minnesota, paper mill; a gain on the sale of timberlands of $0.02 per diluted share, and stock incentive credits of $0.03 per diluted share. Prior-year results included stock incentive charges of $0.02 per diluted share. Net sales increased 6% to $828.7 million and shipments increased 3% to 672 000 tonnes.

"Net sales and shipments increased to record levels in the third quarter despite soft demand in printing and specialty paper markets," said Thomas J. Howatt, president and CEO. "We continue to gain share in our target markets as recently introduced products - such as our new OptiServ(TM) brand hands-free towel dispensing system - build in popularity with customers. Our progress in improving production efficiencies has been masked by sharply higher energy-related costs - most notably natural gas, transportation and fuel oil. In total, the company's energy-related costs increased the equivalent of $0.03 per diluted share in September compared with August, in large part because of the production and supply disruptions caused by hurricane Katrina. In the third quarter, energy-related prices were approximately $0.06 per diluted share higher than last year." 







In thousands dollar, except share amounts









 


3Q 2005


3Q 2004




Net sales 


285,624


262,428




Gross profit 


8,142


32,445




Net  earnings 


-8,992


8,108




Net  earnings  per share- diluted 


-0.18


0.16


Wausau Paper produces fine printing and writing papers, technical specialty papers, and "away-from-home" towel and tissue products.