Boise Inc. reports record sales in packaging segment

“We performed well in first quarter 2012, delivering growing sales and growing earnings,” said Alexander Toeldte, president and chief executive officer of Boise Inc. “Total sales grew 13 percent and net income grew 14 percent over first quarter 2011. This was driven by strong performance in our packaging business, which sold a record 2.4 billion square feet of corrugated products during the quarter, and solid results in our paper business.”

Paper segment sales for first quarter 2012 were $382.4 million, an increase of $7.3 million, or 2 percent compared with first quarter 2011, driven by higher sales volumes of uncoated freesheet, due primarily to growth in label and release papers. This was offset partially by lower net selling prices for uncoated freesheet and lower sales volumes and net selling prices for market pulp.

Paper segment sales increased $22.7 million, or 6 percent, compared with fourth quarter 2011, due primarily to increased sales volumes of uncoated freesheet, offset partially by decreased net selling prices of uncoated freesheet.

“In our paper business, we grew sales volumes of packaging demand-driven papers and premium office papers 11 percent over first quarter 2011, which contributed to the solid 5 percent growth in our uncoated freesheet sales volumes,” Toeldte said.

Packaging segment sales for first quarter 2012 were a record $272.3 million, an increase of $68.9 million, or 34 percent, compared with first quarter 2011. The acquisitions of Tharco and Hexacomb and higher net sales prices for corrugated products were the main drivers of this increase, offset partially by lower external sales volumes of linerboard due to increased vertical integration and lower net selling prices of linerboard as a result of softer export markets. Packaging segment sales for first quarter 2012 were up 8 percent, compared with fourth quarter 2011, due to the acquisition of Hexacomb and higher corrugated product sales volumes, offset partially by lower sales volumes and lower net selling prices of linerboard.  

“Looking forward to second quarter, we expect increased outage costs in both our paper and packaging businesses due to scheduled annual outages at three of our paper mills.” Toeldte said. “In our paper business, we announced a price increase on our cut-size office papers in April and expect to begin benefiting  from the recently implemented price increase on our printing and converting papers. We continue to focus on building shareholder value through well-performing operations, disciplined capital allocation, and growth.”