Longview Fibre 2Q results
announced that its net profits fell to $15,000 (€16,000) for its
second fiscal quarter ending on April 30, compared with $4.4
million, the previous year.
Longview Fibre Company, the US-based packaging provider, has announced that its net profits fell to $15,000 (€16,000) for its second fiscal quarter ending on April 30, compared with $4.4 million, the previous year.
Although overall sales for the second quarter fell to $183.3 million, compared with $214.1 million for the same period last year, the food and beverage segment - a mainstay for the company - was described as stable. Last year's second-quarter results included $14.7 million in operating profits from sales of electrical power generated by the company.
The backlog of orders at the company's Longview mill increased in April, with average daily orders 13 per cent higher than February. The company is operating nine paper machines to meet current demand. Based on the current orders outlook, the company anticipates operating nine machines for the balance of fiscal 2002 and keeping three higher-cost, less-efficient paper machines temporarily shutdown.
R. H. Wollenberg, president and chief operating officer, said: "We are encouraged by increased orders for corrugated containers and paper and paperboard and view stronger customer demand in each operating division as an early sign of potential price recovery within the industry. This recovery is evidenced by June and July paper and paperboard price increase announcements made by the company and industry competitors."
The paper and paperboard segment had an operating loss of $8.6 million in the second quarter of fiscal 2002 compared with an operating profit of $0.7 million for the same period last year. The decline was due to an imbalance of supply and demand in the domestic paper market and the effect of the strong dollar on export paperboard prices.
The company's converted products segment had an operating loss of $6.0 million in the second quarter of fiscal 2002 compared with an operating profit of $44,000 for the same period last year. Average prices decreased 2.3 per cent and volume decreased by 3.5 per cent. Demand from the food, beverage and glass industries in this segment remained stable during the quarter while other segments continued to experience a significant reduction from historical levels of demand following September 11.