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RockTenn Company Reports Operating Results (10-Q)

February 08, 2013 | About:
10qk

10qk

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RockTenn Company (RKT) filed Quarterly Report for the period ended 2012-12-31.

Rock-tenn Company has a market cap of $5.84 billion; its shares were traded at around $82.08 with a P/E ratio of 23.8095 and P/S ratio of 0.6432. The dividend yield of Rock-tenn Company stocks is 1%. Rock-tenn Company had an annual average earning growth of 19.8% over the past 10 years. GuruFocus rated Rock-tenn Company the business predictability rank of 4-star.

Highlight of Business Operations:

Net sales of $2,287.1 million for the first quarter of fiscal 2013 increased $19.4 million, or 0.9% over the first quarter of fiscal 2012, primarily as a result of increased containerboard and corrugated boxes and sheet selling prices partially offset by generally lower prices in our Consumer Packaging and Recycling segments. Total segment income increased $15.5 million or 8.0% to $208.6 million in the first quarter of fiscal 2013 compared to the prior year quarter primarily as a result of increased net sales, decreased recycled fiber and energy costs partially offset by a $16.0 million increase in amortization of major maintenance outage expense in our containerboard mills, $12.6 million earnings reduction at our Hodge, LA mill primarily driven by higher start-up costs and lost production following last year's major capital investment and increased virgin fiber, chemical and freight costs.

Cost of goods sold as a percentage of net sales decreased in the first quarter of fiscal 2013 compared to the prior year first quarter primarily as a result of decreased recycled fiber and energy costs partially offset by a $16.0 million increase in amortization of major maintenance outage expense in our containerboard mills, increased costs at our Hodge, LA mill primarily driven by higher start-up costs and lost production following last year's major capital investment and increased virgin fiber and chemical costs. Aggregate fiber and energy costs decreased $14, and $4 per ton, respectively, while chemical costs increased $4 per ton.

Segment income attributable to the Corrugated Packaging segment in the first quarter of fiscal 2013 increased $28.5 million to $137.8 million compared to $109.3 million in the prior year first quarter. The increase in segment income was primarily a result of increased net sales partially offset by a $16.0 million increase in amortization of major maintenance outage expense in our containerboard mills and a $12.6 million earnings reduction at our Hodge, LA mill primarily driven by higher start-up costs and

The 1.5% decrease 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 generally lower selling prices across the segment and decreased converting volumes partially offset by increased mill volumes.

Segment income of the Consumer Packaging segment for the quarter ended December 31, 2012 decreased $13.8 million compared to the prior year quarter primarily due to decreased net sales and increased virgin fiber and containerboard costs that were partially offset by lower recycled fiber costs. At our mills, virgin fiber costs increased $3.1 million, or $26 per ton and recycled fiber costs decreased approximately $10.7 million, or $51 per ton.

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