RockTenn Provides an Update for Its Fiscal Second Quarter of 2015
01 April 2015 - 8:46AM
RockTenn (NYSE:RKT) today announced that it expects to report
adjusted earnings per share for its fiscal second quarter ending
March 31, 2015, in the range of $0.70 to $0.75 per share, compared
to the previous guidance of $0.80 to $0.90 per share.
The company's corrugated packaging business continues to perform
well. Corrugated container shipments have grown during the quarter
as compared to the prior year periods. Container shipments for
the combined January and February 2015 period increased by 7.2% on
an average week basis and 2.1% on an actual shipment
basis. These volume increases exceeded comparable industry
reported statistics by more than 200 basis points. Our
container shipments for the March interim period reflecting
shipments through March 27, 2015, were approximately 2.5% higher
than average per day container shipments in March 2014.
The change in outlook for the March quarter reflects that our
strong corrugated packaging volume performance has been more than
offset by the following items: 1) the consequences of winter
weather, including natural gas curtailment and challenging
logistics execution, impacted our operations during the quarter
with an estimated financial impact of approximately $0.06 per
share; 2) a substantial electrical failure at our Panama City mill
in early February that triggered a series of events that resulted
in lost production and increased maintenance costs of approximately
$0.04 per share; and, 3) lower promotional activity has reduced
sales in our merchandising displays business to levels lower than
the March quarter of 2014. Reduced sales of merchandising
displays combined with our previously discussed operating
challenges related to new business that was onboarded in 2014
contribute to our expectation that fiscal second quarter
Merchandising Displays segment income will be less than that
reported during the first quarter of fiscal 2015.
RockTenn will host its second quarter earnings conference call
on Thursday, April 30 at 9:00 a.m. EDT. RockTenn will release
its second quarter fiscal 2015 results after the market close on
Wednesday, April 29, 2015.
Investors who wish to participate in the webcast via
teleconference should dial 888-790-4710 (inside the U.S.) or
773-756-0961 (outside the U.S.) at least 15 minutes prior to the
start of the call and enter the passcode ROCKTENN. Replays of the
call will be available through May 28, 2015, and can be accessed at
866-351-2785 (inside the U.S.) and 203-369-0055 (outside the
U.S.).
About RockTenn
RockTenn (NYSE:RKT) is one of North America's leading providers
of packaging solutions and manufacturers of containerboard and
paperboard. RockTenn's 27,000 employees are committed to exceeding
their customers' expectations – every time. The company operates
locations in the United States, Canada, Mexico, Chile and
Argentina. For more information, visit www.rocktenn.com.
Cautionary Statements
Statements in this release that do not relate strictly to
historical facts are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are based on our current expectations,
beliefs, plans or forecasts and use words such as will, estimate,
anticipate, project, intend, expect, or continue, or refer to
future time periods. These statements include, without limitation,
those relating to our expected adjusted earnings per share for the
fiscal second quarter; the estimated financial impact of 1) the
consequences the winter weather had on our operations, including
natural gas curtailment and challenging logistics execution, 2) the
lost production and increased maintenance due to an electrical
failure at our Panama City mill in early February and 3) lower
promotional activity has reduced sales in our merchandising
displays business and operating challenges associated with new
business onboarded in 2014; the expected segment income for our
Merchandising Displays operations for the fiscal second quarter
compared to the first quarter of fiscal 2015; and the corrugated
packaging business continues to perform well. These statements are
subject to certain risks and uncertainties including with respect
to our expectations regarding economic, competitive and market
conditions generally; expected volumes and price levels of
purchases by customers; fiber and energy costs; costs associated
with facility closures; competitive conditions in our businesses;
and possible adverse actions of our customers, competitors and
suppliers. These expectations are based on assumptions that
management believes are reasonable; however, undue reliance should
not be placed on these forward-looking statements because these
risks and uncertainties could cause actual results to differ
materially from those contained in any forward-looking statements.
There are many other factors and uncertainties that impact these
forward-looking statements that we cannot predict accurately,
including our ability to achieve benefits from acquisitions,
including synergies, performance improvements and successful
implementation of capital projects. Further, our business is
subject to a number of general risks that would affect any such
forward-looking statements including, among others, decreases in
demand for our products; increases in energy, raw materials,
shipping and capital equipment costs; reduced supply of raw
materials; fluctuations in selling prices and volumes; intense
competition; the potential loss of certain key customers; changes
in environmental and other governmental regulation; the occurrence
of a natural disaster, such as a hurricane, winter or tropical
storm, earthquake, tornado, flood, fire, or other unanticipated
problems such as labor difficulties, equipment failure or
unscheduled maintenance and repair, which could result in
operational disruptions of varied duration; our desire or ability
to continue to repurchase company stock; and adverse changes in
general market and industry conditions. These risks are more
particularly described in our filings with the Securities and
Exchange Commission, including under the caption
"Business-Forward-Looking Information" and "Risk Factors" in our
Annual Report on Form 10-K for the fiscal year ended September 30,
2014. The information contained in this release speaks as of the
date hereof and we do not undertake any obligation to update this
information as future events unfold.
RockTenn Investors: John Stakel, 678-291-7901 Senior Vice
President - Treasurer jstakel@rocktenn.com
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