Buckeye Technologies, a leading manufacturer and marketer of specialty fibres and nonwoven materials, has announced earnings for fiscal year 2013.

The company has reported a decline in net sales by 9% for the fiscal 2013 compared to fiscal 2012. The net sales for the fourth quarter 2013 were also down $9 million compared to the fourth quarter of 2012.

Year’s figures

The company’s net sales for the year were $812 million, down by 9% compared to net sales from continuing operations in 2012. Specialty fibres external sales were down by 11% due to a small drop in shipment volume, lower fluff pulp and specialty cotton fibres pricing, and unfavourable sales mix due to weak market conditions in Europe. Nonwovens sales were down $10 million due to the sale of the Merfin Systems converting business in mid-fiscal 2012.

Adjusted net income for fiscal 2013 was $92 million, compared to a record $111 million in 2012, and the previous record net income of $91 million in 2011. The two biggest drivers of the reduction in adjusted net income between fiscal years 2012 and 2013 were lower fluff pulp prices and unfavourable sales mix in the specialty fibres segment, where operating income was down $34 million year over year.

Operating income for the nonwoven materials segment was up $9 million in fiscal year 2013 compared to fiscal year 2012, due to a large reduction in fixed manufacturing costs resulting from the closure of the Delta, BC, Canada airlaid nonwoven facility in December 2012.

Fourth quarter results

Comparing the fourth quarter to the third quarter of fiscal 2013, sales were up $20 million as shipment volume was up 15% in the company’s specialty fibres segment and was flat in the nonwovens segment.

Fourth quarter net sales were $216 million, down $9 million compared to the fourth quarter of 2012. While shipment volume was up 9%, driven by increased shipments from the Foley wood fibres facility, this was offset by unfavourable mix and lower selling prices in the specialty fibres segment.

Fourth quarter adjusted net income was $23 million, decreased from the prior year’s $26.2 million. This $3.2 million reduction in adjusted net income was mainly driven by unfavourable sales mix and by lower selling prices for fluff and specialty wood pulp. The company generated $61.4 million in net cash provided by operating activities during the quarter, invested $30.2 million in capital projects (including $15.5 million on the oxygen delignification and specialty conversion projects), reduced debt by $21.1 million to $41.2 million, and paid a regular quarterly dividend of $3.5 million. At the end of the quarter Buckeye’s cash and short term investments stood at $58.1 million.

www.bkitech.com