Buckeye Technologies 1Q profit falls 34 percent

MEMPHIS, Tenn. - Buckeye Technologies Inc. said late Tuesday that its fiscal first-quarter profit fell 34 percent as input costs surged.

The supplier of chemical cellulose earned $8.9 million, or 23 cents per share, in the quarter that ended Sept. 30. That compares with profit of $13.5 million, or 34 cents per share, a year ago.

Buckeye's per-share profit a year ago included a 6-cent per share benefit from a tax rate paid in Germany.

Revenue rose 12 percent to $221.3 million in the quarter. However, the cost of goods sold increased 19 percent to $186 million, and its margins declined to 16 percent of sales from 20.6 percent.

"We were able to offset escalating input costs through a combination of surcharges and selling price increases on our specialty products and improved performance at our Perry, Florida wood cellulose mill," Chief Executive Officer John B. Crowe said in a statement.

Shares rose 13 cents, or 2.7 percent, to $4.95 in morning trading Wednesday.

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