Buckeye Technologies Shares Drop Despite Q4 Profit Rising, Boosting Dividend 20%

News ) drop on Tuesday, despite it reporting a profit for the fourth quarter that increased from last year, reflecting better margins and revenue growth amid higher selling prices and increased shipment volume. Excluding items, adjusted earnings per share more than doubled from last year.

“We were pleased with our fourth quarter and our record fiscal year 2011 financial results. Fourth quarter revenue was significantly improved over the same quarter a year ago, surpassing the old record delivered in the preceding quarter,” Chairman and CEO John Crowe said in a statement.

The Memphis, Tennessee-based company reported net income of $14.10 million or $0.35 per share for the fourth quarter, up from $9.72 million or $0.24 per share in the prior-year quarter.

Excluding primarily an asset impairment of $0.32 per share in the latest quarter, adjusted net income for the quarter surged to $27.8 million or $0.68 per share from $10.6 million or $0.26 per share in the year-ago quarter.

Analysts polled by Thomson Reuters expected the company to earn $0.72 per share for the quarter. Analysts’ estimates typically exclude special items.

Net sales for the quarter grew 25 percent to $255.90 million from $205.13 million in the same quarter last year on higher selling prices and improved shipment volume. Analysts were looking for revenues of $243.39 million for the quarter.

Gross margin for the quarter sharply expanded 710 basis points to 23.3 percent from last year’s 16.2 percent.

For fiscal 2011, the company reported net income of $124.3 million or $3.05 per share, up from $114.6 million or $2.90 per share in the prior year. Excluding items, adjusted net income for the year surged to $90.8 million or $2.23 per share from $34.9 million or $0.91 per share in the year ago. Analysts expected the company to report earnings of $2.27 per share for fiscal 2011.

Net sales for the quarter grew 20 percent to $905.27 million from $756.43 million in the previous quarter. Street was looking for full-year 2011 revenues of $892.76 million.

Separately, the company said its board of directors declared a 20 percent increased regular quarterly cash dividend of $0.06 per share, payable on September 15 to shareholders of record as of the close of business on August 15, 2011.

BKI closed Tuesday’s regular trading session at $26.39, down $1.25 or 4.52% on a volume of 0.57 million shares. The stock lost a further $1.39 or 5.27% in after-hours trading.

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by RTT Staff Writer  Source:  www.rttnews.com

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