Schweitzer-Mauduit Expects First Quarter 2008 Earnings, Excluding Restructuring Expenses,...

Schweitzer-Mauduit Expects First Quarter 2008 Earnings, Excluding
Restructuring Expenses, to be $(.03) to $.03 Per Share

ALPHARETTA, Ga., April 17 /PRNewswire-FirstCall/ -- Schweitzer-Mauduit
International, Inc. (NYSE: SWM) today indicated that net income per share,
excluding restructuring expenses, for the first quarter of 2008 will likely be
in the range of a net loss of $0.03 to net income of $0.03 compared with first
quarter 2007 net income per share of $0.38, excluding restructuring expenses.
The decline in net income per share is attributable to a longer than expected
start-up of a rebuilt paper machine at SWM's Papeteries de Mauduit paper mill
in France which caused lower unit volume and increased manufacturing costs.
The earnings comparison also was negatively effected by company-wide
inflationary cost increases, unfavorable currency impacts from the U.S. dollar
weakening significantly versus the euro and the Brazilian real and increased
interest expense from higher debt levels.
During January 2008, SWM closed the transaction, announced on December 21,
2007, to acquire the 28 percent minority interest in SWM's French
reconstituted tobacco leaf business, LTR Industries, S.A. As a result of this
transaction, SWM's first quarter earnings per share were favorably impacted by
$0.03, net of purchase accounting impacts. SWM's net debt increased by
approximately $55 million from funding the 35 million euro purchase price from
the existing revolving credit facilities.
SWM's net debt increased during the first quarter by approximately $92
million to a total of $189 million, with the above mentioned acquisition
accounting for 60 percent of the increase and the balance due to cash
requirements for capital spending and working capital increases occurring
during a period of reduced cash generation. Net debt has increased
approximately $18 million since March 31, 2008. The increase in net debt
to-date in 2008 is within the capacity of SWM's existing revolving credit
facilities. Additional information regarding SWM's outlook for cash generation
and use, including debt activity, will be provided with SWM's first quarter
earnings release.
Given the expected lower level of first quarter 2008 earnings, SWM now
projects that full year 2008 earnings per share, excluding restructuring
expenses, will likely not achieve previously communicated guidance. Revised
guidance for full year 2008 earnings will be provided with SWM's first quarter
earnings release.
Scheduled Earnings Release and Conference Call
SWM plans to release first quarter 2008 earnings on Thursday, May 8, 2008,
coincident with filing quarterly results to the U.S. Securities and Exchange
Commission on Form 10-Q. An earnings conference call will be scheduled for
10:30 a.m. on Thursday, May 8, 2008 and a separate notice will be issued in
advance.
About Schweitzer-Mauduit International
Schweitzer-Mauduit International, Inc. is a diversified producer of
premium specialty papers and the world's largest supplier of fine papers to
the tobacco industry. It also manufactures specialty papers for use in
alkaline batteries, vacuum cleaner bags, overlay products, saturating base
papers, and printing and packaging applications. Schweitzer-Mauduit and its
subsidiaries conduct business in over 90 countries and employ 3,500 people
worldwide, with operations in the United States, France, Brazil, the
Philippines, Indonesia and Canada. For further information, please visit the
Company's Web site at www.schweitzer-mauduit.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995 and is subject to the
safe harbor created by that Act. Actual results may differ materially from the
results suggested by these statements for a number of reasons, including the
following:
-- We have manufacturing facilities in 6 countries and sell products in
over 90 countries. As a result, we are subject to a variety of import
and export, tax, foreign currency, labor and other regulations within
these countries. Changes in these regulations, or adverse
interpretations or applications, as well as changes in currency
exchange rates, could adversely impact our business in a variety of
ways, including increasing expenses, decreasing sales, limiting our
ability to repatriate funds and generally limiting our ability to
conduct business.

-- Our financial performance is dependent upon the cost of raw materials,
particularly wood pulp, purchased energy, chemicals and labor.
Recently, the total cost of these items has increased significantly,
and competitors' selling prices for certain products and the nature of
our agreements with our customers may make it difficult to pass
changes in these costs on to our customers in a timely and effective
manner.

-- Our sales are concentrated to a limited number of customers. In 2007,
41 percent of our sales were to our 2 largest customers. The loss of
one or both such customers, or a significant reduction in one or both
of these customers' purchases, could have a material adverse effect on
our results of operations.

-- Our financial performance is materially impacted by sales of both
reconstituted tobacco products and cigarette paper for lower ignition
propensity cigarettes. A significant change in sales or production
volumes, pricing or manufacturing costs of these products could have a
material impact on our future financial results.

-- As a result of current excess capacity in the tobacco-related papers
industry and increased operating costs experienced in recent years,
competitive levels of selling prices for certain of our products are
not sufficient to cover those costs with a margin that we consider
reasonable. Such competitive pressures have resulted in downtime of
certain paper machines and, in some cases, accelerated depreciation or
impairment charges for certain equipment and employee severance
expenses associated with downsizing activities. Management continues
to evaluate how to operate our production facilities more effectively
with reduced production volumes.

-- In recent years, governmental entities around the world, particularly
in the United States and western Europe, have taken or have proposed
actions that may have the effect of reducing consumption of tobacco
products. Reports with respect to the possible harmful physical
effects of cigarette smoking and use of tobacco products have been
publicized for many years and, together with actions to restrict or
prohibit advertising and promotion of cigarettes or other tobacco
products, to limit smoking in public places and to increase taxes on
such products, are intended to discourage the consumption of
cigarettes and other such products. Also in recent years, certain
governmental entities, particularly in North America, have enacted,
considered or proposed actions that would require cigarettes to meet
specifications aimed at reducing their likelihood of igniting fires
when the cigarettes are not actively being smoked. Furthermore, it is
not possible to predict what additional legislation or regulations
relating to tobacco products will be enacted, or to what extent, if
any, such legislation or regulations might affect our business.

For additional factors and further discussion of these factors, please see
our Annual Report on Form 10-K for the year ended December 31, 2007.
Non-GAAP Financial Measures
Certain financial measures and comments contained in this press release
exclude restructuring expenses. Financial measures which exclude this item
have not been determined in accordance with accounting principles generally
accepted in the United States and are therefore "non-GAAP" financial measures.
Amounts of net income (loss) per share, excluding restructuring expenses,
mentioned in this release exclude the net income (loss) effects of
restructuring expenses of $0.09 per share and $0.11 per share in the 2008 and
2007 periods, respectively, which reconciles these non-GAAP financial measures
to the most closely analogous measure determined in accordance with accounting
principles generally accepted in the United States.
Schweitzer-Mauduit management believes that investors' understanding of
the Company's performance is enhanced by disclosing these non-GAAP financial
measures as a reasonable basis for comparison of the Company's ongoing results
of operations. Many investors are interested in understanding the performance
of our ongoing businesses and comparing our results from normal operations
from one period to the next. By providing the non-GAAP financial measures, we
believe we are enhancing investors' understanding of our business results.

Contact: Bill Foust Pete Thompson
770-569-4203 770-569-4277

SOURCE Schweitzer-Mauduit International, Inc.

Bill Foust, +1-770-569-4203, or Pete Thompson, +1-770-569-4277, both of
Schweitzer-Mauduit International, Inc.