Boise Income Hit By Hurricanes, Finance Charges
Boise Inc. generated $633.1 million in sales, and another $30.1 million in income from operations, during its most recent third quarter. In third quarter 2007, the paper products manufacturer recorded $583.7 million in sales and $50.7 million in income from operations. The quarter ended Sept. 30.
Despite the higher sales, the company’s net income slipped from $50.2 million a year ago to $4.4 million. In addition to higher fiber costs and operating expenses, during the quarter Boise recorded $5.5 million in lost production and costs stemming from shutting down and restarting a plant in DeRidder, LA as a result of hurricanes Gustave and Ike.
The company also took an $11.3 million non-cash expense as a result of losses due to natural gas hedging derivatives.
Within Boise’s paper segment, higher sales were driven by increased prices. Net volume shipped was down.
