SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (D) OF THE
THE SECURITIES ACT OF 1934
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DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): December 16, 2003
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BUCKEYE TECHNOLOGIES INC.
(Exact name of registrant as specified in its charter)
DELAWARE 33-60032 62-1518973
(State of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.)
1001 Tillman Street, Memphis, Tennessee 38112
(Address of principal executive offices)
Registrant's telephone, including area code (901) 320-8100
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ITEM 5. OTHER EVENTS
On December 16, 2003, the Registrant issued the following press
releases.
News from [OBJECT OMITTED]
FOR IMMEDIATE RELEASE
Contacts: Kris Matula, Executive Vice President
and Chief Financial Officer
901-320-8588
Gordon Mitchell
Investor Relations Manager
901-320-8256
Website: www.bkitech.com
BUCKEYE EXPECTS TO REPORT EARNINGS LOSS
FOR THE OCTOBER-DECEMBER QUARTER
MEMPHIS, TN December 16, 2003 - Buckeye Technologies Inc. (NYSE:BKI) today
announced that it expects to incur a loss of 27-30 cents per share for the
quarter ending December 31, 2003.
The Company anticipates the October-December quarter will be negatively impacted
16-19 cents per share by the following factors:
- Lenzing Fibers, a specialty cellulose customer which owes Buckeye $3.7
million, has recently filed for Chapter 11 reorganization bankruptcy. The
Company is uncertain of the amount it will be able to recover and is
establishing a reserve that will negatively impact earnings by six cents
per share.
- During the quarter, the Company incurred high manufacturing costs and
reduced production at both its Foley, Florida wood pulp mill and its
Memphis, Tennessee cotton cellulose facility. The poor operations traced to
maintenance work accomplished in early October at each location. The Foley
plant had difficulty reestablishing stable operations following the
maintenance shutdown, and the Memphis plant was impacted by the startup of
new equipment and processes associated with the production of paper grade
products previously produced at the recently closed Lumberton cotton
cellulose plant. Although both plants have now returned to normal
operations, the reliability issues will reduce October-December earnings by
approximately four to five cents per share.
- A one-time retroactive payment as a part of the Foley labor agreement
signed in October will reduce earnings by two cents per share.
- Seasonally weak nonwovens sales will reduce earnings by two to three cents
per share.
- The impact of the strong Canadian dollar and Euro on the results at our
Canadian and Glueckstadt, Germany facilities are expected to reduce
earnings by two to three cents per share.
In addition to the operating items listed above, the Company expects to incur
previously reported refinancing and restructuring charges which will further
reduce earnings by about 11 cents per share.
Sales for the quarter ending December 31, 2003 are expected to be at or above
the levels achieved in both the year ago quarter and the immediately preceding
quarter ended September 30, 2003.
Buckeye Chairman David B. Ferraro commented, "Although the high costs we have
recently experienced are very disappointing, they are related to special
situations and one-time events in the current quarter. The combination of sales
increases and cost reductions now being implemented gives us confidence we will
be profitable in the January-March quarter."
Buckeye, which plans to announce its earnings for the quarter on January 21,
2004, has scheduled a conference call at 10:30 a.m. EST, Wednesday, December 17,
2003 to further discuss these issues. All interested parties are invited to join
the call by dialing 800-888-5452 (U.S.) or 719-867-0660 (International).
Buckeye, a leading manufacturer and marketer of specialty cellulose and
absorbent products, is headquartered in Memphis, Tennessee, USA. The Company
currently operates facilities in the United States, Germany, Canada, Ireland and
Brazil. Its products are sold worldwide to makers of consumer and industrial
goods.
Certain matters discussed in this press release may constitute forward-looking
statements within the meaning of the federal securities laws that involve risks
and uncertainties, including but not limited to economic, competitive,
governmental, and technological factors affecting the Company's operations,
financing, markets, products, services and prices, and other factors. For
further information on factors which could impact the Company and the statements
contained herein, please refer to public filings with the Securities and
Exchange Commission.
CONFERENCE CALL
for
BUCKEYE TECHNOLOGIES INC.
Expects to Report Earnings Loss for the October-December Quarter
We have scheduled a conference call for
Wednesday, December 17, 2003
9:30 a.m. Central
Management participating on the call will include
David B. Ferraro, Chief Executive Officer
John B. Crowe, President and Chief Operating Officer
Kristopher J. Matula, Exec. Vice President and Chief Financial Officer
Gordon B. Mitchell, Investor Relations Manager
All interested parties are invited to listen to the audio conference call live
or tape delayed via the website WWW.STREETEVENTS.COM or via the Company's
website homepage at WWW.BKITECH.COM. The replay will be archived on these
websites through January 16, 2004.
In addition, persons interested in listening by telephone may dial in at (800)
888-5452 within the United States. International callers should dial (719)
867-0660. Participants should call no later than 9:20 a.m. CT.
To listen to the telephone replay of the conference call, dial (888) 203-1112 or
(719) 457-0820. The passcode is 675300. The telephone replay will be available
until midnight December 23, 2003.
A press release will be issued via Business Wire after the market closes on
December 16. If you do not receive a copy of this release, please contact Gordon
Mitchell at (901) 320-8256.
We look forward to your participation.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by the
undersigned, thereunto duly authorized,
BUCKEYE TECHNOLOGIES INC.
/s/ Kristopher J. Matula
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Kristopher J. Matula
Executive Vice President and Chief Financial Officer
December 16, 2003