RockTenn Company Reports Operating Results (10-Q)
Rocktenn Co. Cl A has a market cap of $4.36 billion; its shares were traded at around $61.81 with a P/E ratio of 11.9 and P/S ratio of 0.8. The dividend yield of Rocktenn Co. Cl A stocks is 1.3%. Rocktenn Co. Cl A had an annual average earning growth of 19% over the past 10 years.
Highlight of Business Operations:Cost of goods sold as a percentage of net sales increased in the first quarter of fiscal 2012 compared to the prior year first quarter primarily as a result of the Smurfit-Stone Acquisition and increased recycled fiber, chemical and freight costs which were partially offset by reduced virgin fiber costs. Recycled fiber and chemical costs in our legacy mills increased $11 and $8 per ton, respectively, freight expense, excluding the impact of the Smurfit-Stone Acquisition, increased $5.4 million due in part to higher volumes. Virgin fiber costs in our legacy bleached paperboard mill decreased $4 per ton.
Selling, general and administrative (“SG&A”) expenses increased $142.7 million primarily due to the Smurfit-Stone Acquisition and declined as a percentage of net sales in the first quarter of fiscal 2012 compared to the first quarter of fiscal 2011 primarily due to synergies realized in the acquisition. Excluding SG&A associated with the Smurfit-Stone Acquisition, SG&A increased primarily due to increased compensation costs of $6.6 million and increased professional fees and consulting expense for various initiatives of $3.7 million.
Net sales of the Corrugated Packaging segment increased $1,324.5 million in the first quarter of fiscal 2012 compared to the prior year quarter primarily due to the Smurfit-Stone Acquisition and higher legacy corrugated packaging volumes partially offset by generally lower pricing in the segment.
The 13.9% increase in net sales for the Consumer Packaging segment for the first quarter of fiscal 2012 compared to the prior year first quarter was primarily due to display sales from the Smurfit-Stone Acquisition and generally higher selling prices in the segment. Specialty paperboard and market pulp tons shipped increased 3.1% and 12.6%, respectively, and coated recycled paperboard and bleached paperboard tons shipped decreased 2.7% and 0.6%, respectively.
Our Recycling and Waste Solutions segment net sales increased $287.5 million for the first quarter of fiscal 2012 compared to the prior year first quarter primarily due to the Smurfit-Stone Acquisition and increased selling prices which were partially offset by lower volumes excluding the acquisition.
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