Boise Inc. posted a net loss in the first quarter, although sales rose from a year earlier. The company formed in February after predecessor Aldabra 2 Acquisition Corp. bought the Paper, and Packaging and Newsprint, businesses from privately held Boise Cascade LLC. Boise Inc. and Boise Cascade LLC are based in Boise.
Boise Inc. (NYSE:BZ) reported a net loss of $16.4 million, or 26 cents per share, in the first quarter. The predecessor had net income of $22 million in the year-earlier period.
Acquisition expenses, increasing input costs and a planned outage of a DeRidder, La., mill for maintenance and upgrades dragged first-quarter performance, Boise Inc. said in a release.
Combined sales for Boise Inc. and its predecessor rose 2 percent from the year-earlier quarter, to $587.9 million. Packaging sales declined to offset, in part, higher paper sales. Boise Inc. said it benefited from increasing its prices for copier and printer paper as demand stayed strong.
President and CEO Alexander Toeldte said in the release that, by the end of the second quarter, Boise Inc. expects to receive the full financial benefit of higher sales prices for many of its products.
“We are confident that the DeRidder expansion and our investment in label and release specialty papers will be key milestones in our strategy to shift capacity to packaging-driven grades,” he said.
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