Caraustar Industries, Inc. Announces It Expects First Quarter Loss

Apr 12, 2001, 01:00 ET from Carustar Industries, Inc.

    ATLANTA, April 12 /PRNewswire/ --
 Caraustar Industries, Inc. (Nasdaq: CSAR) today announced that it expects
 first quarter results to be a loss of approximately $0.12 to $0.14 per share
 excluding restructuring and one-time charges.  In the first quarter of 2000,
 Caraustar reported fully diluted earnings of $0.25 per share excluding
 restructuring and one-time charges.
     Thomas V. Brown, president and chief executive officer of Caraustar,
 commented, "The first two months of 2001 were slow to recover from the
 25 percent decline in demand our industry suffered over the last six to eight
 weeks of 2000.  March showed signs of recovery with backlogs growing early in
 the month, but weakening in the second half.  As a consequence, Caraustar's
 overall demand in the first quarter of 2001 was down approximately 2 percent
 from the fourth quarter of 2000.  The general trend, as evidenced by the March
 results, is for a gradual but slow recovery in volume as we move into the
 second quarter and beyond.
     "More importantly, we have secured two new business relationships that are
 expected to improve mill volumes by an estimated 50 thousand annual tons by
 the end of the second quarter of 2001.  We are also encouraged by the progress
 that is being made on several other new product developments that are expected
 to have a further positive impact on mill volumes in the second half of 2001.
 These new product developments for the most part do not compete with existing
 recycled paperboard products but rather with other substrates.  The successful
 integration of these products into our mill system should have a significant
 effect on improving our mill capacity utilization and operating profits in
 what are clearly recessionary conditions in our industry."
     Brown added, "Continued reduction in fiber costs during the quarter were
 offset by a decline in selling prices.  Energy costs in January and February
 exceeded their prior year levels by approximately 40 percent, or $20 per ton.
 In March, energy costs decreased some 12 percent, with additional decreases in
 April."
     Caraustar will host a Web cast to review first quarter 2001 earnings on
 Tuesday, April 24, 2001, beginning at 10:30 a.m. (EDT).  In order to listen to
 the Web cast of its conference call, please log on to the Web site URL listed
 below for the conference call Web cast.
 
     Web cast:  http://www.videonewswire.com/CARAUSTAR/042401/ or
                http://www.caraustar.com and look for the Web cast button/icon
                on the "Our Financials" page of Caraustar's Web site.
 
     *   (NOTE:  You must have installed RealPlayer Audio on your system to
         participate on the Web cast.  Please allow for time to download and
         prepare your system to participate in the Web cast.  Visit
         www.realplayer.com to download the free software.)
 
     **  You can access the Web cast over the next 90 days archived through:
         http://www.caraustar.com on the "Our Financials" page.
 
     Caraustar, a recycled packaging company, is one of the largest and lowest-
 cost manufacturers and converters of recycled paperboard and recycled
 packaging products in the United States.  The company has developed its
 leadership position in the industry through diversification and integration
 from raw materials to finished products.  Caraustar is the only major
 packaging company that serves the four principal recycled paperboard product
 markets:  tubes, cores and cans; folding carton and custom packaging; gypsum
 wallboard facing paper; and miscellaneous "other specialty" products.
 
     This press release contains certain "forward-looking statements," within
 the meaning of Section 27A of the Securities Act of 1933 and Section 21E of
 the Securities Exchange Act of 1934, that represent the company's
 expectations, anticipations or beliefs, including statements regarding the
 company's expected earnings for the first quarter of 2001, the expected effect
 of energy costs, and expectations regarding future demand for the company's
 products, market opportunities and the company's future performance.  For this
 purpose, any statements that are not statements of historical fact may be
 deemed to be forward-looking statements.  These statements involve risks and
 uncertainties that could cause actual results to differ materially depending
 on a variety of important factors, including, but not limited to, fluctuations
 in raw material prices and energy costs, downturns in industrial production,
 housing and construction and the consumption of durable and nondurable goods,
 the degree and nature of competition, demand for the company's products,
 changes in government regulations, the company's ability to complete
 acquisitions and successfully integrate the operations of acquired businesses
 and the company's ability to service its substantial indebtedness.  Additional
 relevant risk factors that could cause actual results to differ materially are
 discussed in the company's registration statements and reports filed with the
 Securities and Exchange Commission, which are available from the company.
 These documents also may be examined at public reference facilities maintained
 by the Securities and Exchange Commission or, to the extent filed via EDGAR,
 accessed through the Web Site of the Securities and Exchange Commission
 (http://www.sec.gov).  The company does not undertake any obligation to update
 any forward-looking statements.
 
 

SOURCE Carustar Industries, Inc.
    ATLANTA, April 12 /PRNewswire/ --
 Caraustar Industries, Inc. (Nasdaq: CSAR) today announced that it expects
 first quarter results to be a loss of approximately $0.12 to $0.14 per share
 excluding restructuring and one-time charges.  In the first quarter of 2000,
 Caraustar reported fully diluted earnings of $0.25 per share excluding
 restructuring and one-time charges.
     Thomas V. Brown, president and chief executive officer of Caraustar,
 commented, "The first two months of 2001 were slow to recover from the
 25 percent decline in demand our industry suffered over the last six to eight
 weeks of 2000.  March showed signs of recovery with backlogs growing early in
 the month, but weakening in the second half.  As a consequence, Caraustar's
 overall demand in the first quarter of 2001 was down approximately 2 percent
 from the fourth quarter of 2000.  The general trend, as evidenced by the March
 results, is for a gradual but slow recovery in volume as we move into the
 second quarter and beyond.
     "More importantly, we have secured two new business relationships that are
 expected to improve mill volumes by an estimated 50 thousand annual tons by
 the end of the second quarter of 2001.  We are also encouraged by the progress
 that is being made on several other new product developments that are expected
 to have a further positive impact on mill volumes in the second half of 2001.
 These new product developments for the most part do not compete with existing
 recycled paperboard products but rather with other substrates.  The successful
 integration of these products into our mill system should have a significant
 effect on improving our mill capacity utilization and operating profits in
 what are clearly recessionary conditions in our industry."
     Brown added, "Continued reduction in fiber costs during the quarter were
 offset by a decline in selling prices.  Energy costs in January and February
 exceeded their prior year levels by approximately 40 percent, or $20 per ton.
 In March, energy costs decreased some 12 percent, with additional decreases in
 April."
     Caraustar will host a Web cast to review first quarter 2001 earnings on
 Tuesday, April 24, 2001, beginning at 10:30 a.m. (EDT).  In order to listen to
 the Web cast of its conference call, please log on to the Web site URL listed
 below for the conference call Web cast.
 
     Web cast:  http://www.videonewswire.com/CARAUSTAR/042401/ or
                http://www.caraustar.com and look for the Web cast button/icon
                on the "Our Financials" page of Caraustar's Web site.
 
     *   (NOTE:  You must have installed RealPlayer Audio on your system to
         participate on the Web cast.  Please allow for time to download and
         prepare your system to participate in the Web cast.  Visit
         www.realplayer.com to download the free software.)
 
     **  You can access the Web cast over the next 90 days archived through:
         http://www.caraustar.com on the "Our Financials" page.
 
     Caraustar, a recycled packaging company, is one of the largest and lowest-
 cost manufacturers and converters of recycled paperboard and recycled
 packaging products in the United States.  The company has developed its
 leadership position in the industry through diversification and integration
 from raw materials to finished products.  Caraustar is the only major
 packaging company that serves the four principal recycled paperboard product
 markets:  tubes, cores and cans; folding carton and custom packaging; gypsum
 wallboard facing paper; and miscellaneous "other specialty" products.
 
     This press release contains certain "forward-looking statements," within
 the meaning of Section 27A of the Securities Act of 1933 and Section 21E of
 the Securities Exchange Act of 1934, that represent the company's
 expectations, anticipations or beliefs, including statements regarding the
 company's expected earnings for the first quarter of 2001, the expected effect
 of energy costs, and expectations regarding future demand for the company's
 products, market opportunities and the company's future performance.  For this
 purpose, any statements that are not statements of historical fact may be
 deemed to be forward-looking statements.  These statements involve risks and
 uncertainties that could cause actual results to differ materially depending
 on a variety of important factors, including, but not limited to, fluctuations
 in raw material prices and energy costs, downturns in industrial production,
 housing and construction and the consumption of durable and nondurable goods,
 the degree and nature of competition, demand for the company's products,
 changes in government regulations, the company's ability to complete
 acquisitions and successfully integrate the operations of acquired businesses
 and the company's ability to service its substantial indebtedness.  Additional
 relevant risk factors that could cause actual results to differ materially are
 discussed in the company's registration statements and reports filed with the
 Securities and Exchange Commission, which are available from the company.
 These documents also may be examined at public reference facilities maintained
 by the Securities and Exchange Commission or, to the extent filed via EDGAR,
 accessed through the Web Site of the Securities and Exchange Commission
 (http://www.sec.gov).  The company does not undertake any obligation to update
 any forward-looking statements.
 
 SOURCE  Carustar Industries, Inc.