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Wausau Paper Lowers 2012 EPS Guidance
Tissue Segment Expansion Remains on Track
MOSINEE, Wis.--(BUSINESS WIRE)--Oct. 1, 2012--
Wausau Paper (NYSE:WPP) said today that Paper segment earnings in
both the third and fourth quarter will be impacted by lower
profitability at its Brainerd, Minnesota, facility, as well as recent
further weakening demand in its economically sensitive industrial
product categories.
Henry C. Newell, president and chief executive officer, stated, “We made
the choice to accelerate the conversion of the Brainerd mill to
technical paper grades as part of our strategy to divest the print
franchise. While the pace of the transition resulted in above-target
cash generation, the compressed time period added complexity to the
ability to position the additional capacity creating
higher-than-expected margin pressure, increased product development
costs and reduced operating efficiencies. Weakness in industrial end-use
market demand has exacerbated the impact. With few signs of a general
economic recovery, we now expect pressure on Paper segment profitability
through year end.
“The Company’s Tissue segment continues to demonstrate strong
operational performance, driven in part by above-market case shipment
growth of 3 to 4 percent. Our expansion program, including product
development activities, remains on schedule, with initial start-up of
the new paper machine in Harrodsburg, Kentucky, expected in the fourth
quarter. Additionally, our balance sheet is strong due to above-forecast
cash generation and working capital reductions in our Paper segment."
Mr. Newell continued, “In the near-term, Paper segment profitability
challenges will significantly affect second-half adjusted earnings.
Consequently, we are reducing our full-year adjusted earnings guidance
to $0.28 to $0.30 per share, and anticipate mid-single digit adjusted
earnings per share in both the third and fourth quarters.” The Company’s
previous guidance was for full-year adjusted net earnings in the $0.39
to $0.41 per share range versus prior-year adjusted net earnings of
$0.33 per share.
The Company is scheduled to release third-quarter earnings after the
market close on Monday, October 29. A call to discuss results will be
held at 11:00 a.m. ET Tuesday, October 30. Interested parties may access
the webcast of this call from the Investor section of the Company’s
website at: www.wausaupaper.com.
About Wausau Paper:
Wausau Paper produces and markets
specialty papers for industrial, commercial and consumer end markets as
well as a complete line of away-from-home towel and tissue products. The
Company is headquartered in Mosinee, Wisconsin, and is listed on the
NYSE under the symbol WPP. To learn more about Wausau Paper visit: www.wausaupaper.com.
Safe Harbor under the Private Securities Litigation Reform Act of
1995: The matters discussed in this news release concerning the
Company’s future performance or anticipated financial results are
forward-looking statements and are made pursuant to the safe harbor
provisions of the Securities Reform Act of 1995. Such statements involve
risks and uncertainties which may cause results to differ materially
from those set forth in these statements. Among other things, these
risks and uncertainties include the strength of the economy and demand
for paper products, increases in raw material and energy prices,
manufacturing problems at Company facilities, and other risks and
assumptions described under “Information Concerning Forward-Looking
Statements” in Item 7 and in Item 1A of the Company’s Form 10-K for the
year ended December 31, 2011. The Company assumes no obligation to
update or supplement forward-looking statements that become untrue
because of subsequent events.
Source: Wausau Paper
Wausau Paper
Investor and Media Contact:
Perry Grueber,
715-692-2056
Director Investor Relations
Fax: 715-692-2020
pgrueber@wausaupaper.com
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