RGC: Republic Gypsum is much smaller player. Recent news article <<Republic sees Q3 earnings below Q2 levels
HUTCHINSON, Kan., March 10 (Reuters) - Republic Group Inc. said Wednesday that earnings for its third fiscal quarter are expected to be 35 to 40 percent below second quarter profits because of higher-than-expected expenses.
The company, which makes recycled paperboard, recovered paper fiber and gypsum wallboard, said in a statement that newly-configured production lines at its Duke, Oklahoma, gypsum wallboard plant were taking longer than planned to get started.
Republic also said it accelerated the hiring and training of employees at its new recycled paperboard mill under construction in Lawton, Oklahoma, which it said will cause expenses to be greater than originally expected.
According to First Call, analysts' mean estimate for Republic's third quarter earnings per share is $0.49. The company earned $0.32 a share in its second quarter that ended December 31, 1998.
''We underestimated difficulties involved and the time required in what has amounted to, in essence, the start-up or commissioning of two production lines,'' Chairman and President Phil Simpson said in the statement. ''The good news is that, I believe, we are now over the worst of the start-up curve. Additionally, demand for gypsum wallboard is about as strong as I have ever experienced.''>>
USG by contrast, had a great 4th quarter...Republic may be a great performer coming off of problems, but USG is the market leader and as such has economies of scale and process technology advantages. Nobody is as good at making flat stuff that goes on walls. |
