RockTenn Company (RKT, Financial) filed Quarterly Report for the period ended 2010-03-31.
Rocktenn Company has a market cap of $2.04 billion; its shares were traded at around $52.68 with a P/E ratio of 12.3 and P/S ratio of 0.7. The dividend yield of Rocktenn Company stocks is 1.1%. Rocktenn Company had an annual average earning growth of 11.5% over the past 10 years. GuruFocus rated Rocktenn Company the business predictability rank of 2.5-star.RKT is in the portfolios of Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC, John Keeley of Keeley Fund Management, Steven Cohen of SAC Capital Advisors.
Interest expense for the second quarter of fiscal 2010 decreased to $19.2 million from $24.6 million for the same quarter last year and included non-cash deferred financing cost amortization of $1.5 million and $1.7 million, respectively. The decrease in our average outstanding borrowings decreased interest expense by approximately $4.8 million, and lower interest rates, net of swaps, decreased interest expense by approximately $0.4 million, and deferred financing cost amortization decreased $0.2 million.
Interest expense for the six months ended March 31, 2010 decreased to $40.7 million from $51.0 million for the six months ended March 31, 2009 and included non-cash deferred financing cost amortization of $3.2 million and $3.5 million, respectively. The decrease in our average outstanding borrowings decreased interest expense by approximately $10.2 million, and higher interest rates, net of swaps, increased interest expense by approximately $0.2 million, and deferred financing cost amortization decreased $0.3 million.
Segment income of the Consumer Packaging segment for the quarter ended March 31, 2010 increased primarily due to the recognition of the $8.1 million alternative fuel tax credit, higher paperboard volumes and higher folding carton selling prices and volumes, decreased chemical costs and continued operational improvements, which were partially offset by increased recycled fiber and virgin fiber costs. At our mills, chemical costs decreased approximately $3.0 million, or $12 per ton. Partially offsetting these decreases in expense were lower recycled paperboard selling prices, an increase in pension expense of $2.1 million and an increase in freight expense of $2.0 million due to higher volumes. Recycled fiber and virgin fiber costs increased approximately $10.9 million, or $74 per ton, and $3.6 million, or $33 per ton, respectively, over the prior year quarter.
Segment income of the Consumer Packaging segment for the six months ended March 31, 2010 increased primarily due to the recognition of the $28.8 million alternative fuel tax credit, net, higher paperboard volumes and higher folding carton selling prices, decreased energy and chemical costs, continued operational improvements and the impact of the first quarter of fiscal 2009 Demopolis maintenance outage on the prior year period, which were partially offset by increased recycled fiber and virgin fiber costs. Chemical and energy costs decreased approximately $8.9 million, or $17 per ton, and $3.2 million, or $6 per ton, respectively, and bad debt expense decreased $1.8 million. Partially offsetting these decreases in expense were lower recycled paperboard selling prices, an increase in pension expense of $3.8 million, increased freight expense of $1.8 million due to higher paperboard volumes, expense related to foreign currency transactions increased $1.5 million and increased group insurance expense of $1.1 million. Recycled fiber and virgin fiber costs increased approximately $10.7 million, or $37 per ton, and $4.3 million, or $20 per ton, respectively, over the prior year period.
Segment income attributable to the Corrugated Packaging segment for the second quarter of fiscal 2010 decreased $20.7 million compared to the prior year second quarter due primarily to higher recycled fiber and chemical costs and decreased selling prices which were partially offset by higher volumes and lower energy costs. At our containerboard mills, recycled fiber and chemical costs increased approximately $25.9 million, or $112 per ton, and approximately $1.9 million, or $8 per ton, respectively, over the prior year quarter, and freight expenses increased $1.9 million due to higher volumes. Partially offsetting these increases in expense, energy costs decreased approximately $2.5 million, or $11 per ton, over the prior year quarter.
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Rocktenn Company has a market cap of $2.04 billion; its shares were traded at around $52.68 with a P/E ratio of 12.3 and P/S ratio of 0.7. The dividend yield of Rocktenn Company stocks is 1.1%. Rocktenn Company had an annual average earning growth of 11.5% over the past 10 years. GuruFocus rated Rocktenn Company the business predictability rank of 2.5-star.RKT is in the portfolios of Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC, John Keeley of Keeley Fund Management, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
Cost of goods sold as a percentage of net sales increased in the six months ended March 31, 2010 compared to the six months ended March 31, 2009 primarily as a result of generally lower selling prices and increased recycled fiber and virgin fiber costs which were partially offset by a net alternative fuel tax credit of $28.8 million and reduced energy and chemical costs. Recycled fiber costs and virgin fiber costs increased $51 per ton and $20 per ton, respectively. Energy and chemical costs decreased $7 per ton and $5 per ton, respectively. Additionally, freight expense increased $6.1 million due in part to higher volumes, pension expense increased $4.9 million, and expense related to foreign currency transactions increased $1.8 million.Interest expense for the second quarter of fiscal 2010 decreased to $19.2 million from $24.6 million for the same quarter last year and included non-cash deferred financing cost amortization of $1.5 million and $1.7 million, respectively. The decrease in our average outstanding borrowings decreased interest expense by approximately $4.8 million, and lower interest rates, net of swaps, decreased interest expense by approximately $0.4 million, and deferred financing cost amortization decreased $0.2 million.
Interest expense for the six months ended March 31, 2010 decreased to $40.7 million from $51.0 million for the six months ended March 31, 2009 and included non-cash deferred financing cost amortization of $3.2 million and $3.5 million, respectively. The decrease in our average outstanding borrowings decreased interest expense by approximately $10.2 million, and higher interest rates, net of swaps, increased interest expense by approximately $0.2 million, and deferred financing cost amortization decreased $0.3 million.
Segment income of the Consumer Packaging segment for the quarter ended March 31, 2010 increased primarily due to the recognition of the $8.1 million alternative fuel tax credit, higher paperboard volumes and higher folding carton selling prices and volumes, decreased chemical costs and continued operational improvements, which were partially offset by increased recycled fiber and virgin fiber costs. At our mills, chemical costs decreased approximately $3.0 million, or $12 per ton. Partially offsetting these decreases in expense were lower recycled paperboard selling prices, an increase in pension expense of $2.1 million and an increase in freight expense of $2.0 million due to higher volumes. Recycled fiber and virgin fiber costs increased approximately $10.9 million, or $74 per ton, and $3.6 million, or $33 per ton, respectively, over the prior year quarter.
Segment income of the Consumer Packaging segment for the six months ended March 31, 2010 increased primarily due to the recognition of the $28.8 million alternative fuel tax credit, net, higher paperboard volumes and higher folding carton selling prices, decreased energy and chemical costs, continued operational improvements and the impact of the first quarter of fiscal 2009 Demopolis maintenance outage on the prior year period, which were partially offset by increased recycled fiber and virgin fiber costs. Chemical and energy costs decreased approximately $8.9 million, or $17 per ton, and $3.2 million, or $6 per ton, respectively, and bad debt expense decreased $1.8 million. Partially offsetting these decreases in expense were lower recycled paperboard selling prices, an increase in pension expense of $3.8 million, increased freight expense of $1.8 million due to higher paperboard volumes, expense related to foreign currency transactions increased $1.5 million and increased group insurance expense of $1.1 million. Recycled fiber and virgin fiber costs increased approximately $10.7 million, or $37 per ton, and $4.3 million, or $20 per ton, respectively, over the prior year period.
Segment income attributable to the Corrugated Packaging segment for the second quarter of fiscal 2010 decreased $20.7 million compared to the prior year second quarter due primarily to higher recycled fiber and chemical costs and decreased selling prices which were partially offset by higher volumes and lower energy costs. At our containerboard mills, recycled fiber and chemical costs increased approximately $25.9 million, or $112 per ton, and approximately $1.9 million, or $8 per ton, respectively, over the prior year quarter, and freight expenses increased $1.9 million due to higher volumes. Partially offsetting these increases in expense, energy costs decreased approximately $2.5 million, or $11 per ton, over the prior year quarter.
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