“Significant weaknesses” existed in the Securities and Exchange Commission’s economic analysis of several rules it made prior to the SEC’s 2012 updated guidance on ways the agency could beef up its analysis, a working paper released Monday by the Mercatus Center at George Mason University has found.
Using the Mercatus Regulatory Report Card methodology, senior research fellows Hester Peirce and Jerry Ellig found that “the quality and use of regulatory analysis at the SEC prior to 2012 was significantly inferior to the quality and use of regulatory analysis by executive branch agencies.”
In their working paper, “SEC Regulatory Analysis: A Long Way to Go and a Short Time to Get There,” Peirce and Ellig cite recent requests by Congress that the SEC conduct a more robust economic analysis when it determines whether new rules are in the public interest, as well as federal appeals courts recently vacating several SEC rules due to “inadequate” economic analysis.
Top Forestry Stocks To Buy For 2015: Crown Holdings Inc (CCK)
Crown Holdings, Inc., incorporated on February 7, 2003, is engaged in designing, manufacturing and sale of packaging products for consumer goods. Its business is organized within three divisions: Americas, Europe and Asia Pacific. Its segments within the Americas Division are Americas Beverage and North America Food. Its segments within the European Division are European Beverage and European Food. Americas Beverage includes beverage can operations in the United States, Brazil, Canada, Colombia and Mexico. North America Food includes food can and metal vacuum closure operations in the United States and Canada. European Beverage includes beverage can operations in Europe, the Middle East and North Africa. European Food includes food can and metal vacuum closure operations in Europe and Africa. Its Asia Pacific Division consists of beverage and non-beverage can operations, primarily food cans and specialty packaging. As of December 31, 2012, it acquired Superior Multi-Packaging Ltd.
The Company supplies beverage cans and ends and other packaging products to a range of beverage and beer companies, including Anheuser-Busch InBev, Carlsberg, Coca-Cola, Cott Beverages, Dr Pepper Snapple Group, Heineken, National Beverage and Pepsi-Cola, among others. The Company manufactures a range of food cans and ends, including two-and three-piece cans in numerous shapes and sizes, and sells food cans to food marketers, such as Bonduelle, Cecab, ConAgra, Continentale, Mars, Simmons Foods, Nestle, Princes Group and Stockmeyer, among others.
The Company offers a range of metal vacuum closures and sealing equipment. The Company�� customers for aerosol cans and ends include manufacturers of personal care, food, household and industrial products, including Colgate Palmolive, Procter & Gamble, SC Johnson and Unilever, among others. The Company�� customers for aerosol cans and ends include manufacturers of personal care, food, household and industrial products, including Colgate Palmolive, Procte! r & Gamble, SC Johnson and Unilever, among others.
Americas Division
The Americas Division includes operations in the United States, Brazil, Canada, the Caribbean, Colombia and Mexico. These operations manufacture beverage, food and aerosol cans and ends, specialty packaging and metal vacuum closures and caps. The Americas Beverage segment manufactures aluminum beverage cans and ends and steel crowns, referred to as bottle caps. The North America Food segment manufactures steel and aluminum food cans and ends and metal vacuum closures.
European Division
The European Division includes operations in Eastern and Western Europe, the Middle East and North Africa. These operations manufacture beverage, food and aerosol cans and ends, specialty packaging and metal vacuum closures and caps. The European Beverage segment manufactures steel and aluminum beverage cans and ends. The European Food segment manufactures steel and aluminum food cans and ends, and metal vacuum closures.
Asia Pacific division
The Company's Asia Pacific Division consists of beverage can operations in Cambodia, China, Malaysia, Singapore, Thailand and Vietnam and non-beverage can operations, primarily including food cans and specialty packaging in China, Singapore, Thailand and Vietnam. As of December 31, 2012, the division operated 32 plants in six countries.
The Company competes with Ardagh Group, Ball Corporation, BWAY Corporation, Can-Pack S.A., Metal Container Corporation, Mivisa Envases S.A.U., Rexam PLC and Silgan Holdings Inc.
Advisors' Opinion:- [By Lauren Pollock]
Crown Holdings Inc.(CCK) cut its third-quarter earnings guidance on lower end-user demand in some of the food-and-beverage packaging company’s markets, including European food cans and North American beverage cans.
Best Paper Stocks To Invest In Right Now: Greif Inc (GEF)
Greif, Inc., incorporated on January 25, 1926, is a producer of industrial packaging products and services with manufacturing facilities located in over 50 countries. The Company offers a line of industrial packaging products, such as steel, fiber and plastic drums, rigid intermediate bulk containers, closure systems for industrial packaging products, transit protection products, water bottles and reconditioned containers, and services such as container lifecycle management, blending, filling and other packaging services, logistics and warehousing. It also produces containerboard and corrugated products for niche markets in North America. It sells timber to third parties from its timberland in the south-eastern United States. It has four segments: Rigid Industrial Packaging & Services, Flexible Products & Services, Paper Packaging and Land Management.
Rigid Industrial Packaging and Services
In the Rigid Industrial Packaging and Services, the Company is a provider of rigid industrial packaging products, including steel, fiber and plastic drums, rigid intermediate bulk containers, closure systems for industrial packaging products, transit protection products, water bottles and reconditioned containers, and services, such as container lifecycle management, blending, filling and other packaging services, logistics and warehousing. It sells industrial packaging products to customers in industries, such as chemicals, paints and pigments, food and beverage, petroleum, industrial coatings, agricultural, pharmaceutical and mineral, among others.
Flexible Products and Services segment
In the Flexible Products and Services segment, the Company is a producer of flexible intermediate bulk containers and a North American provider of industrial and consumer multiwall bag products. Its flexible intermediate bulk containers consist of a polypropylene-based woven fabric that is partly produced at its production sites, as well as sourced from strategic regional sup! pliers. Its industrial and consumer multiwall bag products are used to ship a range of industrial and consumer products, such as seed, fertilizers, chemicals, concrete, flour, sugar, feed, pet foods, popcorn, charcoal and salt, primarily for the agricultural, chemical, building products and food industries.
Paper Packaging segment
In the Paper Packaging segment, the Company sells containerboard, corrugated sheets and other corrugated products to customers in North America in industries such as packaging, automotive, food and building products. Its corrugated container products are used to ship such products as home appliances, small machinery, grocery products, building products, automotive components, books and furniture, as well as numerous other applications. Operations related to industrial and consumer multiwall bag products have been reclassified to Flexible Products and Services segment.
Land Management segment
In the Land Management segment, the Company is focused on the active harvesting and regeneration of the United States timber properties to achieve long-term yields. It also sells, from time to time, timberland and special use land, which consists of surplus land, HBU land and development land. As of October 31, 2013, it owned approximately 252,475 acres of timber property in the southeastern United States and approximately 10,300 acres of timber property in Canada.
Advisors' Opinion:- [By Geoff Gannon]
For those of you wondering if Greif Brothers Cooperage has any relation to Greif (GEF) ��yes. It has every relation. It�� the same exact company. And it�� still in pretty much the same business. They used to just make barrels. Now they make all kinds of different drums, containers, etc. That�� not a very big change for a company to make over 60 years or so.
Best Paper Stocks To Invest In Right Now: Boise Inc (BZ)
Boise Inc., incorporated on February 1, 2007, is a manufacturer of packaging and paper products, including corrugated containers and sheets, containerboard, protective packaging products, imaging papers for the office and home, printing and converting papers, label and release papers, newsprint and market pulp. The Company operates in the United States, Europe, Mexico, and Canada. The Company operates in three segments: Packaging, Paper, and Corporate and Other. The Company�� newsprint is sold primarily to newspaper publishers in the southern and southwestern the United States. During the year ended December 31, 2012, approximately 38% of the Company�� uncoated freesheet paper was sold to OfficeMax Incorporated, its customer.
Packaging
In the Packaging segment, the Company manufactures and sells linerboard, containerboard, corrugated containers and sheets, protective packaging products, and newsprint. Linerboard is a paperboard, which when combined with corrugating medium is used in the manufacture of corrugated sheets and containers. Corrugated sheets are containerboard sheets that are sold primarily to converters that produce a variety of corrugated products. Corrugated containers are corrugated sheets that have been fed through converting machines to create containers, which are used in the packaging of fresh fruit and vegetables, processed food, beverages, and other industrial and consumer products. Stock boxes are corrugated containers manufactured to pre-set dimensions.
Protective packaging products include multi-material customized packaging solutions, which may utilize kraft paper-based honeycomb corrugated packaging, foamed plastics, and air pocket packing materials Newsprint is a paper commonly used for printing newspapers, other publications, and advertising material. During the year ended December 31, 2012, its Packaging segment produced approximately 613,000 short tons of linerboard, and its Paper segment produced approximately 135,000 short tons! of corrugating medium. It manufactures linerboard and newsprint on two machines at its mill in DeRidder, Louisiana. It also manufactures corrugated containers and sheets and protective packaging products at 26 plants located in North America and Europe.
Paper
In its Paper segment, the Company manufactures and sells three general categories of products: communication-based papers; packaging-based papers, and market pulp. Its communication-based papers include cut-size office papers, and printing and converting papers. Its Packaging-Demand-Driven Papers include Label and release papers, Flexible packaging papers, and Corrugating medium. Printing and converting papers are used by commercial printers or converters to manufacture envelopes, forms, and other commercial paper products.
Its packaging-based papers include label and release papers and corrugating medium. The Label and release papers include label facestocks, as well as release liners. The coated and uncoated papers sold to customers create packaging products for food and nonfood applications. Market pulp is sold to customers in the open market for use in the manufacture of paper products. The Company manufactures its Paper segment products at three mills, all located in the United States.
Corporate and Other
The Company�� Corporate and Other segment includes transportation assets, such as rail cars and trucks, which it uses to transport its products from its manufacturing sites. The Company provides transportation services not only to its own facilities but also, on a limited basis, to third parties. Rail cars and trucks are typically leased.
The Company competes with International Paper Company, Rock-Tenn Company, Georgia-Pacific LLC, Packaging Corporation of America, Longview Fibre Paper, Packaging, Inc, Green Bay Packaging Inc., KapStone Paper, TexCorr, L.P., Resolute Forest Product, SP Newsprint Co. and Domtar Corporation.
Advisors' Opinion:- [By Paul Ausick]
Stocks on the move: Boise Inc. (NYSE: BZ) is up 26% at $12.55 following the company�� acquisition by Packaging Corporation of America Inc. (NYSE: PKG) for $12.55 a share ($1.28 billion). Omeros Corp. (NASDAQ: OMER) is up 68.2% at $8.56 following an analyst upgrade. Northern Dynasty Minerals Ltd. (NYSEArca: NAK) is down 33.3% at $1.48 following an announcement from Anglo American plc that it was withdrawing from a massive copper mining project in Alaska.
- [By Ben Levisohn]
Packaging Corp. of America�(PKG) has jumped 6.3% to $57.99 after it said it would buy Boise (BZ) for $1.28 billion. Boise has gained 26% to $12.55.
- [By David Sterman]
That was precisely the rationale behind Packaging Corp. of America's (NYSE: PKG) just-announced $2 billion (in cash and assumed debt) acquisition of rival Boise (NYSE: BZ). The deal will create a $6 billion (in sales) behemoth in the cardboard box industry.
- [By Christopher Freeburn]
Under the deal, which is expected to close during the fourth quarter, Packaging Corp. will pay $12.55 a share, or $1.27 billion, for Boise (BZ). That represents a 26% premium over the target’s last closing price, the Associated Press noted.
Best Paper Stocks To Invest In Right Now: Domtar Corp (UFS)
Domtar Corporation, incorporated on August 16, 2006, designs, manufactures, markets and distributes a range of fiber-based products, including communication papers, specialty and packaging papers and adult incontinence products. The Company operates in three business segments: Pulp and Paper, Distribution and Personal Care. Its Pulp and Paper segment consists of the manufacturing, sale and distribution of communication, specialty and packaging papers, as well as softwood, fluff and hardwood market pulp. The Company�� Distribution segment includes the purchasing, warehousing, sale and distribution of its paper products and those of other manufacturers. These products include business and printing papers, certain industrial products and printing supplies. Its Personal Care segment consists of the manufacturing, sale and distribution of adult incontinence products.The Company is an integrated marketer and manufacturer of uncoated freesheet paper in North America for a variety of customers, including merchants, retail outlets, stationers, printers, publishers, converters and end-users. The Company produces incontinence care products marketed primarily under the Attends brand. The Company owns and operates Ariva. On May 10, 2012, the Company acquired EAM Corporation. In June 2013, the Company announced the completion of its acquisition of Xerox Corp paper and print media products business in the United States and Canada. In July 2013, Domtar Corp announced that completion of the acquisition of Associated Hygienic Products (AHP) from DSG International. In January 2014, the Company acquired Laboratorios Indas, SAU.
Pulp and Paper
The Company produces 4.2 million metric tons of hardwood, softwood and fluff pulp at 12 of its 13 mills. The majority of its pulp is consumed internally to manufacture paper and consumer products, with the balance being sold as market pulp. The Company also purchases papergrade pulp from third parties. The Company has 10 pulp and paper mills (eight in the! United States and two in Canada), with an annual paper production capacity of approximately 3.4 million tons of uncoated freesheet paper. Its paper manufacturing operations are supported by 15 converting and distribution operations, including a network of 12 plants located offsite of its paper making operations. In addition, it has forms manufacturing operations at three offsite converting and distribution operations. Approximately 81% of its paper production capacity is in the United States, and the remaining 19% is located in Canada.
The Company produces market pulp in excess of its internal requirements at its three non-integrated pulp mills in Kamloops, Dryden, and Plymouth, as well as at its pulp and paper mills in Espanola, Ashdown, Hawesville, Windsor, Marlboro and Nekoosa. The Company sells approximately 1.6 million metric tons of pulp per year depending on market conditions. Approximately 50% of its trade pulp production capacity is in the United States, and the remaining 50% is located in Canada. The fiber used by its pulp and paper mills in the United States is hardwood and softwood, both being readily available in the market from multiple third-party sources. The fiber used at its Windsor pulp and paper mill is hardwood originating from a variety of sources, including purchases on the open market in Canada and the United States, contracts with Quebec wood producers��marketing boards, public land where it has wood supply allocations and from its private lands. The softwood and hardwood fiber for its Espanola pulp and paper mill and the softwood fiber for its Dryden pulp mill, is obtained from third parties, directly or indirectly from public lands, through designated wood supply allocations for the pulp mills. The fiber used at the Company�� Kamloops pulp mill is all softwood, originating from third-party sawmilling operations in the southern-interior part of British Columbia.
The Company uses various chemical compounds in its pulp and paper manufacturing facili! ties that! it purchases, primarily on a central basis, through contracts. For pulp manufacturing, it uses numerous chemicals, including caustic soda, sodium chlorate, sulfuric acid, lime and peroxide. For paper manufacturing, it also uses several chemical products, including starch, precipitated calcium carbonate, optical brighteners, dyes and aluminum sulfate. It owns power generating assets, including steam turbines, at all of its integrated pulp and paper mills, as well as hydro assets at four locations: Espanola, Ottawa-Hull, Nekoosa and Rothschild. The Company�� business papers include copy and electronic imaging papers, which are used with ink jet and laser printers, photocopiers and plain-paper fax machines, as well as computer papers, preprinted forms and digital papers. These products are primarily for office and home use. The Company�� commercial printing and publishing papers include uncoated freesheet papers, such as offset papers and opaques. These uncoated freesheet grades are used in sheet and roll fed offset presses across the spectrum of commercial printing end-uses, including digital printing. Its publishing papers include tradebook and lightweight uncoated papers used primarily in book publishing applications, such as textbooks, dictionaries, catalogs, magazines, hard cover novels and financial documents. Design papers, a sub-group of commercial printing and publishing papers, have features of color, brightness and texture and are targeted towards graphic artists, design and advertising agencies, primarily for special brochures and annual reports. These products also include base papers that are converted into finished products, such as envelopes, tablets, business forms and data processing/computer forms.
The Company also produces paper for several specialty and packaging markets. These products consist primarily of base stock for thermal printing, flexible packaging, food packaging, medical gowns and drapes, sandpapers backing, carbonless printing, labels and other coating a! nd lamina! ting applications. The Company also manufactures papers for industrial and specialty applications, including carrier papers, treated papers, security papers and specialized printing and converting applications. The Company sells business papers primarily to paper stationers, merchants, office equipment manufacturers and retail outlets. The Company distributes uncoated commercial printing and publishing papers to end-users and commercial printers, mainly through paper merchants, as well as selling directly to converters. The Company sells its specialty and packaging papers mainly to converters, who apply a further production process, such as coating, laminating, folding or waxing to its papers before selling them to a variety of specialized end-users.
Distribution
The Company's Distribution business involves the purchasing, warehousing, sale and distribution of the Company's various products and those of other manufacturers. These products include business, printing and publishing papers and certain packaging products. These products are sold to diverse customer base, which includes small, medium and large commercial printers, publishers, quick copy firms, catalog and retail companies and institutional entities. The Company's Distribution business operates in the United States and Canada under a single banner and umbrella name, Ariva. Ariva operates throughout the Northeast, Mid-Atlantic and Midwest areas from 16 locations in the United States, including 12 distribution centers serving customers across North America.
Personal Care
The Company's Personal Care business sells and manufactures adult incontinence products and distributes disposable washcloths marketed primarily under the Attends brand name. The Company is a supplier of adult incontinence products sold into North America and Northern Europe, selling to hospitals (acute cares) and nursing homes (long-term care) and the Company has a growing presence in the homecare and retail channels. The C! ompany op! erates two manufacturing facilities, with each having the ability to produce multiple product categories. The Company also has a research and development facility and production lines which manufacture high quality airlaid and ultrathin laminated absorbent cores.
Advisors' Opinion:- [By Saibus Research]
Weyerhaeuser is the largest forest products real estate investment trust in the United States. Weyerhaeuser grows and harvests trees, builds homes and makes a range of forest products essential to everyday lives. The company has undergone a dramatic level of strategic and organizational level change over the past several years in the wake of its debt-funded hostile takeover of Willamette Industries in 2002. In 2006, Weyerhaeuser agreed to spin off its fine paper business under a split-off transaction with Domtar (UFS). Under the terms of the deal, Weyerhaeuser would spin-off the fine paper business and the business would merge with Domtar Inc to create Domtar Corporation. Weyerhaeuser has four business segments as follows:
- [By Rich Smith]
On Wednesday, Xerox announced that it has received a binding offer from French paper company Antalis to buy Xerox's European paper and�print media�products business. This follows Xerox's March announcement that it had agreed to sell its U.S. and Canadian paper operations to Canada's Domtar (NYSE: UFS ) .
- [By Rich Duprey]
Specialty paper maker�Domtar� (NYSE: UFS ) �wrote it all down yesterday: it�will pay a�regular quarterly dividend�of $0.55 per share that's 22% higher than the $0.45 per share payout it made last quarter. Shareholders of record on June 14 will receive the new dividend rate at the close of business on July 15.
Best Paper Stocks To Invest In Right Now: CenturyLink Inc.(CTL)
CenturyLink, Inc., together with its subsidiaries, operates as an integrated communications company. The company provides a range of communications services, including voice, Internet, data, and video services in the continental United States. Its services include local exchange and long distance voice telephone services, as well as enhanced voice services, such as call forwarding, caller identification, conference calling, voicemail, selective call ringing, and call waiting; wholesale local network access services; and data services, including high-speed Internet access services, data transmission services over special circuits and private lines, and switched digital television services, as well as special access and private line services. The company also offers fiber transport, competitive local exchange carrier, security monitoring, and other communications, as well as professional and business information services. In addition, it provides other related services, such as leasing, selling, installing, and maintaining customer premise telecommunications equipment and wiring; payphone services; and network database services, as well as participates in the publication of local telephone directories. Further, the company offers printing, direct mail services, and cable television services; and wireless broadband Internet access services and satellite television services. As of December 31, 2010, it operated approximately 6.5 million telephone access lines. CenturyLink, Inc was founded in 1968 and is based in Monroe, Louisiana.
Advisors' Opinion:- [By WWW.GURUFOCUS.COM]
Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description: 1. Avg. High Yield Price 2. 20-Year DCF Price 3. Avg. P/E Price 4. Graham Number T is trading at a discount to only 3.) above. Since T's tangible book value is not meaningful, a Graham number can not be calculated. The stock is trading at a 11.6% premium to its calculated fair value of $28.64. T did not earn any Stars in this section. Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description: 1. Free Cash Flow Payout 2. Debt To Total Capital 3. Key Metrics 4. Dividend Growth Rate 5. Years of Div. Growth 6. Rolling 4-yr Div. > 15% T earned one Star in this section for 3.) above and earned a Star for having an acceptable score in at least two of the four Key Metrics measured. The company has paid a cash dividend to shareholders every year since 1984 and has increased its dividend payments for 31 consecutive years. Dividend Income vs. MMA: Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA) or Treasury bond? This section compares the earning ability of this stock with a high yield MMA. Two items are considered in this section, see page 2 of the linked PDF for a detailed description: 1. NPV MMA Diff. 2. Years to > MMA T earned a Star in this section for its NPV MMA Diff. of the $1,161. This amount is in excess of the $500 target I look for in a stock that has increased dividends as long as T has. The stock's current yield of 5.76% exceeds the 3.68% estimated 20-year average MMA rate. Memberships and Peers: T is a member of the S&P 500, a Dividend Aristocrat, a member of the Broad Dividend Achievers��Index and a Dividend Champion. The company's peer group includes: CenturyLink, I
- [By Laura Brodbeck]
Next week investors will be waiting for several key earnings reports including�Tesla Motors, Inc. (NASDAQ: TSLA), Time Warner Inc. (NYSE: TWX), CenturyLink, Inc. (NYSE: CTL), Groupon, Inc. (NASDAQ: GRPN)
- [By Mike Deane]
CenturyLink, Inc. (CTL) announced its third quarter earnings after the bell on Wednesday, with core revenues tumbling 1% from last year’s Q3 figure.
CTL Earnings In Brief
-The company announced operating revenues of $4.52 billion, which was slightly above the analyst consensus of $4.51 billion.
-The company’s adjusted earnings came in at $375 million, or 63 cents per share; this is in line with analysts’ EPS estimates.
-CTL gave EPS guidance for the fourth quarter of 55 cents to 60 cents, which is below the 63 cents that analysts are expecting.
-Q4 guidance for revenue is in the range of $4.5 billion to $4.55 billion, which is in line with analysts’ views.CEO Commentary
Glen F. Post III, the CEO and president of CenturyLink, had the following to say about the company’s quarterly results:
“Overall, we continue to perform well with particular strength in our Business segment where sustained demand for high-bandwidth services and solid sales momentum continue to drive strong results.�Despite this overall solid operating performance in the third quarter, there was a special item which significantly impacted our�financial results�for the quarter. We were required, under GAAP, to recognize a non-cash $1.1 billion impairment to the goodwill assigned to our Data Hosting segment. While we continue to be optimistic and encouraged about the future growth potential and value of our Data Hosting business, we are not currently achieving the forecasted growth and cash flows we originally projected.�As part of our accounting valuation process, past performance was a factor in the development of growth projections for our Data Hosting business in future periods.”
No Mention of Dividend�
CTL did not mention its dividend in the quarterly report, and last paid a dividend on September 19. Look for CTL to declare a dividend in mid-November. The company’s last dividend mov
Best Paper Stocks To Invest In Right Now: Rock-Tenn Co (RKT)
Rock-Tenn Company (RockTenn), incorporated on September 20, 1985, is a North America's integrated manufacturer of corrugated and consumer packaging. The Company operates locations in the United States, Canada, Mexico, Chile, Argentina, Puerto Rico and China. The Company operates in three segments: Corrugated Packaging, consisting of its containerboard mills and its corrugated converting operations; Consumer Packaging, consisting of its coated and uncoated paperboard mills, consumer packaging converting operations and merchandising display facilities, and Recycling, which consists of its recycled fiber brokerage and collection operations. On June 22, 2012, the Company acquired Mid South Packaging LLC. On October 28, 2011, the Company acquired four entities doing business as GMI Group.
Corrugated Packaging Segment
The Company is a producer of linerboard and corrugated medium (containerboard) measured by tons produced and a producer of graphics pre-printed linerboard in North America. It operates an integrated system, which manufactures containerboard, corrugated sheets, corrugated packaging and preprinted linerboard for sale to industrial and consumer products manufacturers and corrugated box manufacturers. It produces a range of corrugated containers designed to protect, ship, store and display products made to its customers' merchandising and distribution specifications. It also converts corrugated sheets into corrugated products ranging from one-color protective cartons to point-of-purchase packaging. Corrugated packaging is used to provide protective packaging for shipment and distribution of food, paper, health and beauty and other household, consumer, commercial and industrial products and in the case of graphically enhanced corrugated packaging for retail sale, particularly in club store locations and retail sale. It also provides structural and graphic design, engineering services, and custom and standard automated packaging machines, offering customers turn-key instal! lation, automation, line integration and packaging solutions. It feeds linerboard and corrugated medium into corrugators, which flutes the medium to specified sizes, glues the linerboard and fluted medium together and slits and cuts the resulting corrugated paperboard into sheets to customer specifications. Its container board mills and corrugated container operations are integrated with its containerboard production used internally by its corrugated container operations. During the fiscal year ended September 30, 2012 (fiscal 2012), sales of corrugated packaging products to external customers accounted for 65.7% of its net sales.
Consumer Packaging Segment
The Company operates an integrated system of coated recycled mills and a bleached paperboard mill, which produces paperboard for its folding carton operations and third parties. The Company is a manufacturer of folding cartons in North America measured by net sales. Its folding cartons are used to package food, paper, health and beauty and other household consumer, commercial and industrial products for retail sale. It also manufactures express mail envelopes for the overnight courier industry. Folding cartons protect customers��products during shipment and distribution and employ graphics to promote them at retail. It manufactures folding cartons from recycled and virgin paperboard, laminated paperboard and substrates with specialty characteristics, such as grease masking and microwaveability. It prints, coats, die-cuts and glues the cartons to customer specifications. It ships finished cartons to customers for assembling, filling and sealing. It employs a range of offset, flexographic, gravure, backside printing, and coating and finishing technologies. It supports its customers with package development, innovation and design services and package testing services.
The Company manufactures temporary and permanent point-of-purchase displays. The Company designs, manufactures and packs temporary displays for sal! e to cons! umer products companies. These displays are used as marketing tools to support new product introductions and specific product promotions in mass merchandising stores, supermarkets, convenience stores, home improvement stores and other retail locations. It also designs, manufactures and pre-assemble permanent displays for the same categories of customers. It makes temporary displays from corrugated paperboard. It provides contract packing services, such as multi-product promotional packing and product manipulation, such as multipacks and onpacks. The Company manufactures lithographic laminated packaging for sale to its customers, which require packaging with graphics and strength characteristics.
The Company operates an integrated system of specialty recycled paperboard mills, which includes its Seven Hills Paperboard LLC (Seven Hills) joint venture. Its specialty recycled paperboard mills, excluding Seven Hills, produce paperboard for its solid fiber interior packaging converting operations and third parties, and its Seven Hills joint venture manufactures gypsum paperboard liner for sale to its joint venture partner. It sells its specialty recycled paperboard to manufacturers of solid fiber interior packaging, tubes and cores, and other paperboard products. It also converts specialty paperboard into book covers and other products. Its 65% owned subsidiary, RTS, designs and manufactures solid fiber and corrugated partitions and die-cut paperboard components. It manufactures and sells its solid fiber and corrugated partitions principally to glass container manufacturers and producers of beer, food, wine, spirits, cosmetics and pharmaceuticals and to the automotive industry. During fiscal 2012, sales of consumer packaging products to external customers accounted for 27.5% of its net sales.
Recycling Segment
The Company�� recycled fiber brokerage and collection operations provide a strategic advantage to its mills. Its recycling operations procure recovered paper (or! recycled! fiber) for its paper mills, as well as for third parties from factories, warehouses, commercial printers, office complexes, grocery and retail stores, document storage facilities, paper converters and other wastepaper collectors. It handles a range of grades of recovered paper, including old corrugated containers, office paper, box clippings, newspaper and print shop scraps. It operates recycling facilities, which collects, sorts, grades and bales recovered paper and after sorting and baling, it transfer recovered paper to its paperboard mills for processing, or sell it to the United States manufacturers of paperboard, as well as manufacturers of tissue, newsprint, roofing products and insulation and to export markets. It also collects aluminum and plastics for resale to manufacturers of these products. Its waste reduction services extract additional recyclables from the waste stream by working with customers. In addition, it operates a nationwide fiber marketing and brokerage system, which serves regional and national accounts, as well as its recycled paperboard and containerboard mills and sells scrap materials from its converting businesses and mills. Brokerage contracts provide bulk purchasing. Its recycling facilities are located close to its recycled paperboard and containerboard mills, ensuring availability of supply with reduced shipping costs. During fiscal 2012, sales to external customers accounted for 6.8% of its net sales.
Advisors' Opinion:- [By Saibus Research]
Consolidation has been incremental in the paper and forest products industry. In May 2012, Resolute Forest Products (RFP) (formerly AbitibiBowater) announced that it had acquired 50.1% of Fibrek and acquired the remaining 49.9% in August. 2011 saw International Paper (IP) announce a hostile takeover of Temple-Inland and after offering $32/share in cash as well as the assumption of $600M of TIN's debt, IP was able to close the deal in February 2012. 2011 also saw Rock-Tenn (RKT) acquire Smurfit-Stone to create the number two player in the linerboard segment with 20% market share, trailing only International Paper's 40%. We see these moves as a prudent step to consolidation in the industry as certain types of paper such as newsprint and uncoated free sheet (office paper) are seeing falling demand due to increased use of digital resources.
Best Paper Stocks To Invest In Right Now: Fibria Celulose SA (FBR)
Fibria Celulose S.A. (Fibria), formerly Votorantim Celulose e Papel S.A., incorporated on July 25, 1941, is a producer of market pulp. During the year ended December 31, 2010, Fibria produced 5,054 kilotons of eucalyptus pulp (including 50.0% of the pulp production of Veracel). The Company also produces coated and uncoated paper, carbonless paper and thermal paper at its Piracicaba paper mill, located in the State of Sao Paulo with an annual production capacity of 190 kilotons. During 2010, it produced 115 kilotons of paper products and recorded consolidated net revenues. Fibria produces bleached eucalyptus kraft pulp at three pulp mills, the Aracruz pulp mill located in the State of Espirito Santo, which has an annual production capacity of 2.3 million tons; the Tres Lagoas pulp mill located in the State of Mato Grosso do Sul, which has an annual production capacity of 1.3 million tons, and the Jacarei pulp mill located in the State of Sao Paulo, which has an annual production capacity of 1.1 million tons. The Company has a 50% interest in Veracel, which owns and operates a pulp mill in the municipality of Eunapolis, State of Bahia, with an annual production capacity of 1.1 million tons.
Pulp
Fibria produces bleached eucalyptus kraft pulp from planted eucalyptus trees. Bleached eucalyptus kraft pulp is a range of hardwood pulp. Eucalyptus is a hardwood tree, and its pulp has short fibers and is generally suited to manufacturing tissue, coated and uncoated printing and writing paper and coated packaging boards. Short fibers are optimal for manufacturing wood-free paper with good printability, smoothness, brightness and uniformity. Market pulp is the pulp sold to producers of paper products. Kraft pulp is pulp produced in a chemical process using sulphate. During 2010, it produced 5,054 kilotons of pulp (including 50.0% of the pulp production of Veracel).
Paper
During 2010, Fibria produced 115 kilotons of paper. The Company produced coated printing an! d writing paper, which is a coated woodfree paper used for promotional materials, folders, internal sheets and cover of magazines, books, tabloids, inserts and mailing; uncoated printing and writing paper, which is a uncoated woodfree paper in reels and sheets; carbonless paper, which is used to produce multi-copy forms, POS, invoices and other applications in place of traditional carbon paper, and thermal paper, which is traditionally used in fax machines; POS, bar code labels, toll tickets, water and gas bills and receipts for automated teller machines (ATMs) and credit card machines. It manufactures thermal paper products with technology licensed byOji Paper Co., Ltd (Oji Paper).
The Company competes with APRIL, Arauco, APP, Georgia Pacific, CMPC, Sodra, Stora Enso, Weyerhaeuser and Suzano.
Advisors' Opinion:- [By Seth Jayson]
Fibria Celulose (NYSE: FBR ) reported earnings on July 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Fibria Celulose met expectations on revenues and missed expectations on earnings per share.
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