Interesting read,,there is no question in my mind that many commodity prices are on the rebound..Look at steel prices,pulp prices and inventories...I like materials here,,as shown by P&G and Dial,,this cost is being passed on them..
manufacturing.net
Some of these companies will benefit from the lean times(a reason I bought AA) Look at the research alert put out by Bethlehem Steel BS,,old betsy on the mend?
"Friday March 10, 10:02 am Eastern Time
RESEARCH ALERT - Bethlehem Steel Q1 EPS up
NEW YORK, March 10 (Reuters) - Salomon Smith Barney said on Friday it raised its first quarter estimate for Bethlehem Steel Corp. to a loss of $0.08 from a loss of $0.20 a share, because of stronger-than-expected shipments and cost improvements.
-- Over the past few months, the company has made some meaningful changes in its cost structure, and these benefits are kicking in sooner than originally forecast, firm said."
IP's 3Q report--
International Paper Reports Strong Improvement in Operating Earnings for Third Quarter
October 12, 1999
Purchase, N.Y. -- International Paper reported third-quarter 1999 earnings of $192 million ($.46 per share) before special and extraordinary items. This is an increase of $92 million ($.22 per share) over second-quarter 1999 net earnings, which were $100 million ($.24 per share). Third-quarter 1998 earnings before extraordinary items were $81 million ($.20 per share). Third-quarter 1999 net sales were $6.3 billion, up $300 million from the previous quarter and the year-earlier period. All previous periods have been restated to include Union Camp Corporation.
"Our markets have been improving all year and the results we announced today clearly show that," noted John Dillon, chairman and chief executive officer. "In each month of the quarter, our earnings increased and we believe the improved quarterly earnings trend will continue for the next year."
"Not only are our markets getting better, and our internal cost-cutting programs succeeding, we are also seeing the benefits of our merger with Union Camp reflected in our earnings, keeping us on track to realize the $425 million in merger related annualized savings by the end of 2000. In fact, we will achieve about one-third of that savings by the end of this year. Going forward, we will continue to manage production in line with our customer orders and not build inventory."
International Paper reported net earnings of $142 million ($.34 per share) in the third quarter of 1999 after special and extraordinary items. Special items amounted to $47 million after tax ($.11 per share) and consisted of pre-tax charges of $50 million for Union Camp merger related severance, $18 million for one-time merger expenses and $10 million for environmental reserves related to former Union Camp facilities. The extraordinary expense of $3 million after taxes ($.01 per share) was for the refinancing of high interest Union Camp debt, which International Paper assumed under the merger agreement.
Because International Paper has a large concentration of facilities and forestlands in the southeastern U.S., this season,s Atlantic hurricanes negatively impacted earnings by about $.03 per share.
"We experienced weather related disruptions caused by Hurricane Floyd in September," Dillon explained. "Our facilities in the coastal areas of Georgia, South Carolina, North Carolina, and Virginia shutdown as the storm approached. Most of the locations resumed production within hours of the storm,s passage. One major exception was our Franklin, Virginia complex, which resumed partial production last week. As a result, we estimate that the company is losing about 2,000 tons per day of production from the Franklin Mill, one of our largest Printing and Communications Papers operations." During the third quarter, the effective tax rate on operating earnings decreased from 30 percent to 28 percent. This had a positive impact on earnings of about $.03 per share.
Looking at the business segments, the largest gains came from the Packaging and Printing and Communications Papers businesses, which together account for slightly more than half of International Paper,s annual sales. Earnings in the U.S. papers segment increased more than 400 percent over the previous quarter due to favorable pricing, internal cost-cutting activities and other benefits realized as a result of the merger with Union Camp earlier this year.
Earnings in the company,s European Papers business also improved substantially in the third quarter. The company,s eastern European operations were particularly strong, led by its mill in Poland, with the recently acquired mill in Russia also contributing to the profit improvement.
In the Packaging segment, earnings for Industrial Packaging were up 30 percent over the second quarter, primarily as a result of favorable pricing and other benefits from the Union Camp merger. Consumer Packaging earnings were up only slightly from the prior period, due in part to a slower than anticipated price recovery for the bleached board system and tight markets for converters.
Earnings within the Petroleum and Chemicals segment improved by 38 percent from the second quarter, due to higher prices.
Forest Products segment earnings were almost 15 percent above the previous quarter. Within the segment, Forest Resources, earnings were up about 30 percent over the previous quarter, in part due to the sale of forestlands in northeastern Maine. In addition, harvest volumes continued strong, and stumpage prices for both pine pulpwood and saw timber improved in September. Within Building Materials gains in the wood products group were offset by a slight decline in earnings from the MasoniteTM and decorative products groups.
In the Distribution segment, sales were relatively flat with the previous quarter, while earnings declined slightly.
International Paper (www.internationalpaper.com) is the world's largest paper and forest products company. Businesses include printing paper, packaging, building materials, chemical products and distribution. Headquartered in the United States at Purchase, N.Y., the company has operations in nearly 50 countries, employs nearly 100,000 people and exports its products to more than 130 nations. |
