Published Oct. 31, 2012
The owner of a North Charleston paper mill and Summerville lumber mill Tuesday reported a 44% increase in net sales and a 13% boost to net income for the third quarter.
Kapstone Paper and Packaging Corp. said net sales were $310 million, up from $216 million during the third quarter of 2011. Its acquisition of U.S. Corrugated Inc. helped drive the increase by pumping $99 million into the company’s third-quarter results. Kapstone acquired U.S. Corrugated, a paper mill in Cowpens, in October 2011.
Net income was $18 million for the quarter compared with $16 million for a similar period last year, the company reported.
The acquisition helped offset lower productivity and average revenue per ton, which fell by $14. Flooding at Kapstone’s Roanoke Rapids mill in North Carolina and unplanned downtime at the Charleston mill accounted for the loss in productivity.
In September, Kapstone announced it will invest $29 million in the North Charleston paper mill to upgrade one of its paper-making machines. The company’s board of directors approved the upgrade, which will improve one of the company’s machines that makes lightweight linerboard.
The company expects engineering and construction to last about 18 months, and it hopes to install the new press during the first quarter of 2014.
Kapstone purchased the Charleston Kraft business from MeadWestvaco in 2008, tripling the size of Kapstone and giving it a lumber mill in Summerville and the North Charleston paper mill.