KapStone Paper And Packaging Q3 Profit Rises

(RTTNews) - KapStone Paper and Packaging Corp. (KS) reported that its net income for the third quarter ended September 30, 2014 rose to $54.25 million or $0.56 per share from $44.41 million or $0.46 per share in the same quarter last year.

Adjusted earnings per share improved to $0.60 from $0.52 in the prior year.

Operating income of $94 million for the 2014 third quarter increased by $13 million, or 16 percent, compared to the 2013 third quarter. The improved financial performance primarily reflects benefits from significantly higher productivity improvements in mill operations, the Longview acquisition, higher prices and sales volumes partially offset by inflation on labor and input costs, the timing of annual maintenance outages and the cost associated with a voluntary separation plan.

Consolidated net sales of $598 million in the third quarter of 2014 increased by $59 million, or 11 percent compared to $539 million for the 2013 third quarter. The increase is primarily due to the Longview acquisition, which contributed $43 million of additional revenue.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.67 per share and revenues of $604.18 million for the quarter. Analysts' estimates typically exclude special items.