Friday, April 28, 2006
© Copyright 2014
Gwinnett Daily Post
LAWRENCEVILLE - Rock-Tenn Co.'s stock climbed 95 cents Thursday, a nearly 7 percent gain, to $15.25 after the consumer product packaging maker said it posted solid earnings.
The Norcross company said its second-quarter profit increased to $5.2 million, or 14 cents per share, from $200,000 in net income, or a penny a share, a year ago.
Earnings fell short of the 15-cent-per-share mark that analysts set.
Sales rose 34 percent to $529.7 million, from $394.4 million the year before.
Rock-Tenn was hit with $3.5 million in restructuring and other charges, along with $900,000 in operating losses linked to the company's closed folding carton plants and the pending shut down later this year of its Kerman, Calif., folding carton facility.
In a press release, Rock-Tenn Chairman and CEO James A. Rubright said operating earnings rose $15.9 million because the company's two largest business segments did well.
"Good demand and pricing improvements for recycled paperboard and the acquisition of our bleached board mill resulted in much higher earnings in our paperboard mills," Rubright said.