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SchweitzerMauduit International Inc. Reports Operating Results (10-Q)

August 04, 2010 | About:
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10qk

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SchweitzerMauduit International Inc. (SWM) filed Quarterly Report for the period ended 2010-06-30.

Schweitzermauduit International Inc. has a market cap of $915 million; its shares were traded at around $49.83 with a P/E ratio of 11 and P/S ratio of 1.2. The dividend yield of Schweitzermauduit International Inc. stocks is 1.2%. Schweitzermauduit International Inc. had an annual average earning growth of 1.5% over the past 5 years.SWM is in the portfolios of Paul Tudor Jones of The Tudor Group, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors, Ron Baron of Baron Funds, PRIMECAP Management, Chuck Royce of Royce& Associates.

Highlight of Business Operations:

Net sales were $182.9 million in the three months ended June 30, 2010, a 0.2 percent decrease from the prior-year quarter. Net sales decreased $0.4 million as a result of $6.9 million in lower sales from our Malaucène, France facility which ceased operations in 2009 and $0.6 million in unfavorable foreign currency exchange rate impacts. These decreases were partially offset by $3.8 million impact from higher sales volumes and $3.3 million in an improved mix of products sold and higher selling prices.

Gross profit was $44.9 million in the three months ended June 30, 2010, an increase of $0.3 million from the prior-year quarter. The gross profit margin was 24.5 percent, increased from 24.3 percent in the prior-year quarter. Restructuring and impairment expenses were $4.0 million and $13.3 million for the three month periods ended June 30, 2010 and 2009, respectively. Operating profit was $23.6 million in the three month period ended June 30, 2010 versus $12.0 million in the prior-year quarter. The higher gross profit and operating profit were both primarily due to $5.0 million in cost savings and $1.6 million in improved manufacturing costs. These benefits were partially offset by $4.7 million in higher inflationary costs primarily from higher wood pulp and $2.1 million from an unfavorable mix of products sold. Operating profit was favorably impacted by a reduction in restructuring expense of $9.3 million,

Capital spending was $15.9 million and $2.0 million during the three months ended June 30, 2010 and 2009, respectively. The increase in capital spending was primarily due to $4.5 million to establish LIP production capability in the European Union, or EU, and initial construction spending of $6.4 million for a new RTL production facility included in the 2010 period.

Net sales were $375.9 million in the six months ended June 30, 2010, a 2.3 percent increase over the prior-year period. Net sales increased $8.5 million as a result of $13.3 million due to an improved mix of products sold and higher selling prices, $8.7 million in favorable foreign currency exchange rate impacts and $3.8 million in higher volumes. These increases were partially offset by $17.3 million in lower sales from our Malaucène, France facility which ceased operations in 2009.

Gross profit was $98.1 million in the six months ended June 30, 2010, an increase of $11.9 million from the prior-year period. The gross profit margin was 26.1 percent, an increase from 24.3 percent in the prior-year period. Restructuring and impairment expenses were $8.8 million and $13.6 million for the six month periods ended June 30, 2010 and 2009, respectively. Operating profit was $52.7 million in the six month period ended June 30, 2010 versus $34.8 million in the prior-year period. After the $4.8 million reduction in restructuring expense, the higher gross profit and operating profit were both primarily due to $8.7 million in cost savings and $5.1 million in improved manufacturing costs and $2.7 million from a favorable mix of products sold and higher selling prices. These benefits were partially offset by $6.4 million in higher inflationary costs primarily from higher wood pulp.

Capital spending was $25.8 million and $4.6 million during the six months ended June 30, 2010 and 2009, respectively. The increase in capital spending was primarily due to $7.9 million to establish LIP production capability in the European Union, or EU, and initial construction spending of $9.8 million for a new RTL production facility included in the 2010 period.

Read the The complete Report

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