Rock-Tenn's 2Q Profit More Than Doubles

NORCROSS, Ga. (AP) — Containerboard and paper products maker Rock-Tenn Co. said Monday its second-quarter profit more than doubled, due primarily to lower costs for materials.

For the three months ending March 31, net income was $37.4 million, or 97 cents per share. That was compared with $17.1 million, or 45 cents per share, in the same period a year ago.

Excluding one-time charges for its acquisition of Southern Container last year, earnings were $1.02 per share.

On average, analysts polled by Thomson Reuters expected quarterly earnings of 97 cents per share on revenue of $709 million. Analysts typically do not include one-time charges in their estimates.

Sales fell 1.4 percent to $676.3 million in the second quarter, down from $685.9 million in the year-ago period. At the same time, the cost of goods sold fell to $504 million, compared with $560 million in the same time frame.

The strong performance reflects the "benefits of being a very low-cost provider to food and consumer products companies," Rock-Tenn Chairman and Chief Executive Officer James A. Rubright said in a statement.

Shares of Rock-Tenn fell $1.46, or 4 percent, to $33 Monday.