Wausau-Mosinee Reports Weak 2Q Results, Says 3Q Will Be Sluggish
Press release from the issuing company
MOSINEE, Wis.---July 23, 2001--Wausau-Mosinee Paper Corporation today reported net earnings of $2.4 million, or $.05 per share, for the second quarter of 2001, compared to earnings of $7.8 million, or $.15 per share, for the same period last year. Adjusted for stock incentive programs and non-recurring expenses, 2001 second quarter earnings were $.05 per share as compared to net earnings of $.15 per share in 2000 and a net loss of $.06 per share in the first quarter of 2001. Second quarter net sales were $231.0 million compared to $245.2 million last year.
"Second quarter results were much improved over the first quarter despite difficult business conditions that continue to impact most of our markets,'' explained Thomas J. Howatt, President and CEO. "Volume gains in our Towel & Tissue and Printing & Writing businesses, combined with company-wide reductions in energy and raw material costs, drove most of the improvement. Compared to last year, second quarter results were most notably impacted by reduced sales volume and selling prices within the Specialty Paper Group, with weak market conditions leading to reduced operations at two of the Group's paper production facilities during the quarter.''
Through the first six months of 2001, Wausau-Mosinee posted a net loss of $2.3 million, or $.05 per share, compared to a net loss of $5.1 million, or $.10 per share, for the same period last year. Adjusted for non-recurring items, the Company reported a 2001 first half loss of $.01 per share compared to net earnings of $.26 per share last year.
Mr. Howatt also stated that the Company continues to aggressively focus on the improvement initiatives outlined in the fourth quarter of last year. "Although disappointed in our earnings, I am pleased with the progress we have made on our internal initiatives,'' he said. "During the first half of the year operating efficiencies improved by nearly 2% over last year and capital spending was reduced by 60%. In addition, targeted components of working capital have been trimmed by $25 million since implementation of this program last year. The operating disciplines that we are focusing on have allowed us to reduce debt by over $30 million since mid-first quarter and will provide further bottom line benefits as business conditions improve.''
"As we look to the third quarter, however, we expect little change in the weak market conditions we have faced this year,'' added Howatt. "Coupled with annual maintenance shutdowns or capital-related downtime scheduled for all six of our mills in the quarter, we believe it will be difficult to substantially improve on second quarter results in the third quarter.''
Wausau-Mosinee's second quarter conference call is scheduled for 11:00 a.m. EDT on July 24, 2001 and can be accessed through the company's website at www.wausaumosinee.com under "Investor Information''. A replay of the webcast will be available at the same site through July 31, 2001.
Wausau-Mosinee Paper Corporation is a major producer of fine printing and writing papers and technical specialty papers. The company also produces and markets "away-from-home'' towel and tissue products.
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