Buckeye Technologies Inc. (BKI, Financial) filed Quarterly Report for the period ended 2012-12-31.
Buckeye Technologies, Inc. has a market cap of $1.11 billion; its shares were traded at around $28.67 with a P/E ratio of 10.5042 and P/S ratio of 1.3175. The dividend yield of Buckeye Technologies, Inc. stocks is 1.12%. Buckeye Technologies, Inc. had an annual average earning growth of 14.2% over the past 10 years. GuruFocus rated Buckeye Technologies, Inc. the business predictability rank of 3.5-star.
During the six months ended December 31, 2012, net sales were $401.3 million, a decrease of $51.6 million, or 11%, compared to the six months ended December 31, 2011. Lower shipment volume had a negative impact of approximately $16 million due to lost sales in our specialty fibers segment resulting from the June steam drum failure outage at our Foley facility and weaker demand in some of our wood and cotton specialty fibers markets. Unfavorable changes in product mix and lower selling prices had unfavorable impacts of approximately $15 million and $6 million, respectively. Year-to-date shipment volume, excluding the King divestiture, was down 4% compared to the same period a year ago, with specialty fibers shipments down 5% while nonwovens shipment volume was up 3%. The King divestiture accounted for $8.8 million of the year over year reduction in net sales. On a year-to-date basis, average selling prices on our high-end wood pulp, excluding shipments into the viscose staple fiber market, were up 10%, while fluff pulp prices decreased by $129 per ton compared to the same period a year ago. With the closure of our Delta airlaid nonwovens facility in November 2012 and anticipated transfer of approximately 40% of its sales volume to our other two nonwoven plants, we expect net sales in our nonwovens segment to decrease approximately $25 million over the next 12 months compared to the preceding 12 months. We expect the impact of the Delta closure to have a favorable impact on gross margin of approximately $4 million over this same time frame.
Net earnings for the three months ended December 31, 2012, of $12.9 million, or $0.33 per diluted share, were up $18.3 million, or $0.47 per diluted share compared to the same period a year ago. The variation in the net benefit from the cellulosic biofuel credit (“CBC”) accounted for $3.6 million, or $0.09 per diluted share, of this increase in net income, while after-tax impairment costs accounted for an additional $26.8 million, or $0.67 per diluted share increase. The current year s results were negatively impacted by $7.8 million, net of tax, or $0.20 per share, due to restructuring costs. The remaining $4.3 million or $0.09 per diluted share reduction in net income was primarily the result of unfavorable product mix.
Net earnings for the six months ended December 31, 2012, of $42.4 million or $1.07 per diluted share, were up $6.7 million or $0.19 per diluted share compared to the six months ended December 31, 2011. After-tax impairment charges accounted for $26.8 million, or $0.67 per diluted share of the increase in net income. The current year s results were negatively impacted by $8.4 million, net of tax, or $0.22 per share, due to restructuring costs, and the variation in the net benefit from the CBC negatively impacted net income by $2.1 million or $0.05 per diluted share. The remaining $9.6 million or $0.21 per share reduction in net income was primarily the result of lower sales driven by lower selling prices and unfavorable changes in mix.
Net sales for the three months ended December 31, 2012, were $17.1 million, or 7.7%, lower than in the comparable prior-year period, as the effect of unfavorable changes in mix exceeded the favorable impact of increased sales volume by approximately $5 million, reflecting shipments into the viscose staple fiber market. Additionally, lower sales prices reduced net sales by approximately $6 million as fluff pulp prices fell $131 per ton compared to the prior year. The divestiture of our King, North Carolina converting business lowered net sales in the nonwoven materials segment by $4.3 million compared to the same period a year ago. Net sales for the six months ended December 31, 2012, were $51.6 million, or 11.4%, lower than in the comparable prior-year period. Lower shipment volume had a negative impact of approximately $16 million due to lost sales in our specialty fibers segment resulting from the June steam drum failure outage at our Foley facility and weaker demand in some of our wood and cotton specialty fibers markets. Unfavorable changes in product mix and lower selling prices had unfavorable impacts of approximately $15 million and $6 million, respectively. The King divestiture accounted for $8.8 million of the year over year reduction in net sales. In addition, exchange rates in Europe unfavorably impacted net sales for the nonwoven materials segment by $4.4 million.
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Buckeye Technologies, Inc. has a market cap of $1.11 billion; its shares were traded at around $28.67 with a P/E ratio of 10.5042 and P/S ratio of 1.3175. The dividend yield of Buckeye Technologies, Inc. stocks is 1.12%. Buckeye Technologies, Inc. had an annual average earning growth of 14.2% over the past 10 years. GuruFocus rated Buckeye Technologies, Inc. the business predictability rank of 3.5-star.
Highlight of Business Operations:
Net sales for the three months ended December 31, 2012, were $204.3 million, a decrease of $17.1 million, or 8%, compared to net sales of $221.4 million for the same period in 2011. While shipment volume was up in both the specialty fibers and nonwoven materials segments with a positive impact of approximately $15 million, product mix unfavorably impacted net sales by approximately $20 million. We shipped approximately 12,000 tons into the viscose staple fiber (rayon) market due to weak demand in some of our high-end markets, particularly the European tire cord market, and there was also an unfavorable mix impact on sales due to the increase in wood pulp shipments combined with a decrease in higher-priced cotton linter pulp shipments. We expect to limit our shipments into the viscose staple fiber market to approximately 5,000 tons in the third fiscal quarter. The sale of our King, North Carolina converting business in the third quarter of fiscal 2012 accounted for $4.3 million of the year over year reduction in net sales. Specialty fibers segment sales decreased 10% while sales in the nonwoven materials segment (excluding the impact of the King divestiture) were flat. Shipment volume, excluding the King divestiture, was up 6% compared to the prior year, with specialty fibers shipments up 7% and nonwovens shipment volume up 4%. Average selling prices on our high-end wood pulp, excluding shipments into the viscose staple fiber market, were up 9% compared to the year-ago quarter. Fluff pulp prices decreased by $131 per ton compared to the same period in 2011.During the six months ended December 31, 2012, net sales were $401.3 million, a decrease of $51.6 million, or 11%, compared to the six months ended December 31, 2011. Lower shipment volume had a negative impact of approximately $16 million due to lost sales in our specialty fibers segment resulting from the June steam drum failure outage at our Foley facility and weaker demand in some of our wood and cotton specialty fibers markets. Unfavorable changes in product mix and lower selling prices had unfavorable impacts of approximately $15 million and $6 million, respectively. Year-to-date shipment volume, excluding the King divestiture, was down 4% compared to the same period a year ago, with specialty fibers shipments down 5% while nonwovens shipment volume was up 3%. The King divestiture accounted for $8.8 million of the year over year reduction in net sales. On a year-to-date basis, average selling prices on our high-end wood pulp, excluding shipments into the viscose staple fiber market, were up 10%, while fluff pulp prices decreased by $129 per ton compared to the same period a year ago. With the closure of our Delta airlaid nonwovens facility in November 2012 and anticipated transfer of approximately 40% of its sales volume to our other two nonwoven plants, we expect net sales in our nonwovens segment to decrease approximately $25 million over the next 12 months compared to the preceding 12 months. We expect the impact of the Delta closure to have a favorable impact on gross margin of approximately $4 million over this same time frame.
Net earnings for the three months ended December 31, 2012, of $12.9 million, or $0.33 per diluted share, were up $18.3 million, or $0.47 per diluted share compared to the same period a year ago. The variation in the net benefit from the cellulosic biofuel credit (“CBC”) accounted for $3.6 million, or $0.09 per diluted share, of this increase in net income, while after-tax impairment costs accounted for an additional $26.8 million, or $0.67 per diluted share increase. The current year s results were negatively impacted by $7.8 million, net of tax, or $0.20 per share, due to restructuring costs. The remaining $4.3 million or $0.09 per diluted share reduction in net income was primarily the result of unfavorable product mix.
Net earnings for the six months ended December 31, 2012, of $42.4 million or $1.07 per diluted share, were up $6.7 million or $0.19 per diluted share compared to the six months ended December 31, 2011. After-tax impairment charges accounted for $26.8 million, or $0.67 per diluted share of the increase in net income. The current year s results were negatively impacted by $8.4 million, net of tax, or $0.22 per share, due to restructuring costs, and the variation in the net benefit from the CBC negatively impacted net income by $2.1 million or $0.05 per diluted share. The remaining $9.6 million or $0.21 per share reduction in net income was primarily the result of lower sales driven by lower selling prices and unfavorable changes in mix.
Net sales for the three months ended December 31, 2012, were $17.1 million, or 7.7%, lower than in the comparable prior-year period, as the effect of unfavorable changes in mix exceeded the favorable impact of increased sales volume by approximately $5 million, reflecting shipments into the viscose staple fiber market. Additionally, lower sales prices reduced net sales by approximately $6 million as fluff pulp prices fell $131 per ton compared to the prior year. The divestiture of our King, North Carolina converting business lowered net sales in the nonwoven materials segment by $4.3 million compared to the same period a year ago. Net sales for the six months ended December 31, 2012, were $51.6 million, or 11.4%, lower than in the comparable prior-year period. Lower shipment volume had a negative impact of approximately $16 million due to lost sales in our specialty fibers segment resulting from the June steam drum failure outage at our Foley facility and weaker demand in some of our wood and cotton specialty fibers markets. Unfavorable changes in product mix and lower selling prices had unfavorable impacts of approximately $15 million and $6 million, respectively. The King divestiture accounted for $8.8 million of the year over year reduction in net sales. In addition, exchange rates in Europe unfavorably impacted net sales for the nonwoven materials segment by $4.4 million.
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