Rock-Tenn Q4 Profit Down 13%, But Results Beat View

(RTTNews) - Packaging solutions provider Rock-Tenn Co. (RKT) on Monday reported a 13 percent decline in profit for the fourth quarter from last year, as higher revenues were more than offset by an increase in costs and expenses. However, both revenue and adjusted earnings per share for the quarter beat analysts' estimates.

The Georgia-based company's fourth-quarter net income was $153.9 million or $1.06 per share, down from $176.5 million or $1.20 per share last year.

Excluding pension lump sum settlement expenses and restructuring costs, adjusted earnings for the quarter were $1.31 per share, compared to $1.33 per share in the same period last year. On average, seventeen analysts polled by Thomson Reuters expected the company to earn $1.05 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter rose 5 percent to $2.61 billion from $2.49 billion last year, primarily as a result of the Tacoma Mill and display acquisitions completed in fiscal 2014. Analysts had a consensus revenue estimate of $2.51 billion for the quarter.

Corrugated Packaging segment net sales for the quarter rose 5 percent to $1.83 billion due to the Tacoma Mill acquisition. Consumer Packaging segment net sales increased 6 percent to $525.1 million on higher selling prices and volumes.

Merchandising Displays segment net sales grew 24 percent to $229.2 million, primarily due to higher volumes and the impact of two display acquisitions completed in fiscal 2014.

However, recycling segment net sales decreased 22 percent to $88.1 million, primarily due to lower volumes and recovered fiber prices as a result of soft global markets and collection facility closures.

For fiscal 2014, net income attributable to Rock-Tenn shareholders declined to $479.7 million or $3.29 per share from $727.3 million or $4.98 per share in the prior year. Adjusted earnings per share for the year were $3.76, compared to $3.65 per share in the previous year.

Net sales for the year grew 4 percent to $9.90 billion from $9.55 billion last year.

Street expected the company to earn $3.52 per share for the year on revenues of $9.84 billion.

RKT closed Monday's trading at $51.51, up $0.36 or 0.70 percent on a volume of 1.46 million shares. In after-hours, the stock further gained $1.49 or 2.89 percent to $53.00.