Schweitzer-Mauduit Reports Higher Income

Source from:  tr.itsmyiq.com Jul 26, 2007 07/27/2007

Schweitzer-Mauduit International Inc. reported second quarter 2007 net income of $1 million, compared with a net income of $700,000 during the second quarter of 2006. The 2007 quarter income included $3.4 million in pretax restructuring expenses. Wayne H. Deitrich, chairman of the board and chief executive officer, attributed the improved results to increased earnings in reconstitute tobacco products and cigarette paper used in lower ignition propensity cigarettes. But Schweitzer-Mauduit failed to sustain the rate of year-over-year earnings improvements of the first quarter of 2007, due to weakness in the company's traditional tobacco-related papers business. Dietrich said this was caused by continuing cost inflation, the unfavorable impact of reduced volumes on earnings, and further strengthening of the Brazilian currency. Schweitzer-Mauduit is has been restructuring its business in western Europe to lower production cost while maintaining quality. Earlier this year, the company shut down one of its paper machines in France. A second machine is expected to cease operations later this year. Enditem