Boise Cascade Posts a Loss
Boise Cascade (BCC) reported a second-quarter loss on Thursday, reversing a profit in the 2002 quarter, but the results exceeded Wall Street's expectations.
The paper and forest-products manufacturer, which recently announced plans to acquire OfficeMax (OMX), lost $3.9 million, or 12 cents a share, for the quarter.
Analysts polled by Thomson First Call predicted a loss of 25 cents a share, on average. The company earned $3.2 million a year ago. In the first quarter, Boise lost $27.5 million, or 53 cents a share. Revenue rose to $1.93 billion from $1.89 billion a year ago.
While the company's office-solutions unit saw gains in the quarter compared with last year, the building and paper-making units lost ground. The office-solutions unit earned $23.9 million on an operating basis, up from last year's $23.4 million.The building unit saw operating income of $9.8 million for the quarter, compared with last year's $14 million. After a wet and cold spring, especially in the eastern U.S., the company said the building season finally got underway in the second quarter, but the improvement came too late to help the quarter's results. The paper-making unit posted operating income of $1 million, compared with $8.8 million in the second quarter of 2002. The company said its results were low because a 5% increase in average paper prices was more than offset by a 12% decline in sales volume and higher manufacturing costs. "We expect all three of Boise's businesses to show improved results in the third quarter," Chairman and Chief Executive George J. Harad said in a statement. "Sales and income in our office products business typically strengthen from second-quarter levels and should again this year." He also said the company doesn't expect its planned acquisition of OfficeMax to have any effect on its third-quarter operating financial performance because the transaction won't be completed before the fourth quarter. Shares of Boise Cascade were recently up 6 cents to $23.57 on the New York Stock Exchange.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV