Quarterly Reports Look for Future Recovery

P. H. Glatfelter Co. announced that fourth quarter net income was $14.3 million, compared to net income of $3.8 million for the fourth quarter of 1998. Net income for the year was $41.4 million, compared to $36.1 million for 1998 including one-time after-tax charges of $6.0.

Net sales for the fourth quarter of 1999 were $177.5 million, an increase of 10.3 percent versus the same period in 1998. Net sales for the year 1999 were $680.6 million compared to $705.1 million for 1998.

``We were quite pleased with our results for the fourth quarter,'' said George H. Glatfelter II, president and CEO. ``The growth in our earnings is gratifying and is a result of continued strength in the fundamentals of the paper industry, the effort that we have made in improving our position in the markets we serve and our cost reduction programs. Most paper industry analysts believe that the fundamental supply/demand balance should continue to improve over the next several years. This improved environment has boosted our specialized printing papers business and, coupled with continued strength and our growth in the engineered paper markets, should present an opportunity for enhanced earnings this year.''

Caraustar Industries, Inc. announced that revenues for the fourth quarter were $248.8 million, an increase of 36.8 percent over revenues of $181.8 million for the same quarter of 1998. Net income was $9.3 million, a decrease of 25.8 percent from fourth quarter 1998 net income of $12.5 million.

For the year ended December 31, 1999, revenues rose 20.8 percent to a record $890.1 million, compared with $736.9 million last year. Net income for the year decreased 20.7 percent to $41.1 million, compared with $51.8 million for the year 1998.

The company's total unit volume of paperboard shipments in the fourth quarter increased 23.3 percent to 301,000 tons compared to the fourth quarter of 1998. Mill volume increased by 20.9 percent to 273,000 tons, while converted products volume increased 21.2 percent to 117,000 tons due to acquisitions completed in 1999. Excluding acquisitions, total volume in the fourth quarter of 1999 increased 1.5 percent to 248 thousand tons compared to the fourth quarter of 1998, with mill volume up 1.2 percent to 229 thousand tons and converted product volume down 2.7 percent to 94 thousand tons. However, compared to the third quarter of 1999, mill volume decreased by 20 thousand tons, or 6.8 percent and converted product volume decreased by 7 thousand tons, primarily as a result of lower shipments in the final month of the year.

Average selling prices for the company's mills increased by a more than expected $30 per ton in the fourth quarter of 1999 compared to the third quarter of 1999. Recovered fiber costs increased $4 per ton in the quarter versus the third quarter of 1999. Selling prices for converted tubes and cores increased $41 per ton and paperboard costs increased $26 per ton in the fourth quarter compared with the third quarter of 1999.

Badger Paper Mills, Inc. reported 1999 fourth quarter net income of $659,000, and 1999 annual net income of $1,135,000. This compares to 1998 fourth quarter net income of $407,000, and a 1998 net income of $1,744,000. Sales for the fourth quarter 1999 were $17,617,000 compared to 1998 sales of $13,883,000. Sales were $67,024,000 in 1999 versus $65,727,000 in 1998.

Badger rebounded in the fourth quarter reporting a profit following a third quarter loss. The company's Flexible Packaging Division operated at record levels during the fourth quarter and positively impacted the overall performance of the company. Badger has reported profitable operations in seven of the last eight quarters.

Crown Vantage Inc. reported results for its fourth quarter and. ``Crown Vantage experienced both progress and disappointing results in 1999,'' said Robert A. Olah, president and CEO. ``In our continuing businesses, while we saw some improvement in the fourth quarter, average pricing declined more than $75 per ton year over year. Markets continued to be soft in many of our segments, particularly in packaging and uncoated printing, writing and publication papers.

``The fourth quarter saw a trend reversal with rising paper prices. Unfortunately these price increases were more than offset by rising costs and one-time items. Pulp and energy price increases substantially affected our manufacturing costs, as well as seasonal softness in demand in our high-value segments. Actions we took in line with our plan each carried charges to the bottom line in Q4.

In December, Crown Vantage closed one of two mills that make up its Parchment, Mich., facility. The company reported a net loss of $30.5 million for the 1999 fourth quarter compared with a net loss of $107 million for the year-ago quarter and a net loss of $23.5 million for the 1999 third quarter.

Net sales for the fourth quarter of 1999 were $166.4 million compared with $202 million for last year's fourth quarter and $166.3 million for the third quarter of 1999. Net sales in our continuing businesses were up 2.5 percent versus the third quarter.

For 1999, Crown Vantage reported a net loss of $103.1 million, which included one-time items and special charges of $12.5 million, compared with a net loss of $140.5 million for the year-ago period.