Tuesday, Buckeye Technologies Inc. (BKI), a cellulose-based specialty products maker, reported a lower profit and revenue for the first quarter, owing to reduced demand and associated production downtime in its Specialty Fibers segment due to the economic downturn.
The Memphis, Tennessee-based company reported a net income of $4.29 million or $0.11 per share for the first quarter, down from $10.42 million or $0.26 per share a year ago.
On average, two analysts polled by Thomson Reuters estimated earnings of $0.11 per share for the first quarter. Analysts' estimates typically exclude special items.
Revenue for the quarter decreased 15% to $171.64 million from $201.87 million in the comparable quarter last year. Analysts expected revenues of $187.53 million for the quarter.
Segment wise, revenue from Specialty Fibers declined 18% due to reduced demand for cotton specialty fibers, wood specialty fibers used in automotive applications, and fluff pulp. Revenue from nonwoven materials also decreased 2% during the quarter.
For the nine-month period, the company reported a net loss of $111.8 million or $2.89 per share, compared to a net income of $37.8 million or $0.96 per share for the same period a year ago. Revenue for the period declined to $577.6 million from $610.9 million in the year-ago period.
The company indicated that it intends to further reduce staffing at its Memphis cotton cellulose plant beginning May to match reduced demand levels.
BKI closed Tuesday's regular trading at $4.04, up $0.17 or 4.39%, on a volume of 293K shares on the NYSE.
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