SWM Reports Increased Sales, Profits

Source from:  tr.itsmyiq.com Aug 8, 2008 08/11/2008

Schweitzer-Mauduit International yesterday reported second quarter 2008 net income of $2.0 million, up from $1.0 million during the second quarter of 2007, on net sales of $202 million, up from $171.8 million. Diluted earnings per share were $0.13, up from $0.06. Restructuring expenses decreased earnings per share during the second quarters of 2008 and 2007 by $0.15 and $0.14, respectively. Excluding restructuring expenses, earnings per share during the second quarter of 2008, at $0.28, were increased by 40 per cent on those of the previous second quarter. Wayne H. Deitrich, chairman of the board and CEO, said that the improvement in results against those of the first quarter of 2008 and the second quarter of 2007 had been expected. "Earnings increased primarily due to higher sales volumes for reconstituted tobacco leaf, or RTL, and cigarette paper used in lower ignition propensity, or LIP, cigarettes," he said. "We also benefited from the January 2008 purchase of the 28 per cent minority interest of LTR Industries, S.A., or LTRI. "Operation of the recently rebuilt paper machine at our Papeteries de Mauduit mill, or PdM, improved during the second quarter, but still contributed to an increase in production costs versus last year. "We continue to experience significant inflationary cost increases, especially energy, and unfavorable currency impacts. "As a result of increased earnings benefiting cash generation, planned reductions in capital spending and reductions in working capital, we lowered debt during the second quarter. "On July 1, 2008, we announced the exit of the coated papers business in Brazil, which is a further action to restore profitability to this operation." Enditem