USA:Specialty fiber maker Buckeye net sales up 9.5% for April-June

Specialty fibers and nonwoven materials maker Buckeye Technologies Inc announced it earned $8.7 million after tax ($0.23 per share) in the quarter ended June 30, 2005.

The Company''s results include a $5.5 million tax benefit ($0.15 per share) relating to the previously announced favorable tax ruling in connection with its investment in its discontinued facility at Cork, Ireland and $1.7 million after tax ($0.05 cents per share) in restructuring and impairment charges related to its previously announced plan to close the Glueckstadt, Germany cotton linter pulp plant at the end of calendar 2005.

During the same quarter of the prior year the Company earned $1.4 million after tax ($0.04 cents per share) which included $2.0 million ($0.05 per share) after tax in restructuring and impairment charges primarily related to the closure of its facilities in Cork, Ireland and Lumberton, North Carolina.

During fiscal year 2005, the Company earned $20.1 million after tax ($0.53 per share), including impairment, restructuring, financing costs, special asset sales, and the favorable tax ruling which netted to a profit increase of $0.3 million after tax. This compares to a loss of $38.2 million after tax ($1.03 per share) in fiscal year 2004 which included impairment, restructuring, and refinancing expenses of $36.6 million after tax ($0.99 per share).

Net sales for the April-June quarter were $183.9 million, 9.5 percent above the $168.0 million achieved inthe same quarter of the prior year. Net sales for fiscal 2005 were $712.8 million, 8.5 percent above the $656.9 million achieved in the prior year.
Buckeye Chairman, David B. Ferraro, commented, "Fiscal year 2005 was a year of improvement and recovery for Buckeye. They made considerable progress in restoring the Company''s profitability and strengthened their balance sheet although their financial results still fell short of where they would like them to be."

Mr. Ferraro went on to say, "Cash flow in fiscal 2005 was particularly encouraging. Net cash provided by operating activities totaled $78.6 million, which enabled us to reduce the debt on their balance sheet by $67.1 million (from $604.0 million to $536.9 million). They remain committed to achieving further debt reduction in fiscal 2006 and beyond."

Buckeye is a leading producer & marketer of specialty fibers and nonwoven materials. The Company currently operates facilities in the United States, Germany, Canada, and Brazil. Its products are sold worldwide to makers of consumer and industrial goods.

Tennessee based Buckeye is the only manufacturer in the world offering cellulose-based specialty products made from both wood and cotton and utilizing wetlaid and airlaid technologies. As a result, we produce and market a broader range of cellulose-based specialty products than any of our competitors.