Wausau Paper today reported net losses for both the fourth quarter of 2011 and for the full year at a time when its largest shareholder wants the company to take additional steps to build shareholder value.
The company said its fourth-quarter net loss was $28.7 million, or 58 cents per share, compared to net earnings of $15.2 million, or 31 cents per share a year ago; meanwhile, full-year net losses of 44 cents per share compared to prior-year net earnings of 75 cents per share.
Fourth quarter net sales decreased 3% to $252.7 million, while shipments decreased 6% to 153,000 tons due primarily to planned reductions in the paper segment’s print and color market.
The prior-year results included a tax credit of $12.7 million, or 26 cents per share, related to the cellulosic biofuel producers tax credit.
Wausau Paper has completed the sales of its print and color premium brands and plans to close papermaking operations at its Brokaw manufacturing facility in the first quarter of 2012. The closing accounted for a loss of $52.9 million, or $1.08 per share.
In addition, the company completed the sale of its remaining timberland holdings, recording a fourth-quarter gain of 47 cents per share.
The New York-based Starboard Value LLC, which is Wausau Paper’s largest shareholder, has called for the board of directors to either sell the company or sell off pieces.
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