Wausau Paper cuts FY profit outlook on weak demand
* Forecasts full-year profit $0.28-$0.30 vs $0.39-$0.41 earlier
* Sees weak paper segment profit in third quarter
* Shares down 5 pct in extended trade
Oct 1 (Reuters) - Wausau Paper Corp cut its full-year profit forecast as weak demand at its paper business continues to pressure margins, sending its shares down 5 percent in extended trade.
The company, which caters to industries such as food packaging and medical products, now expects to earn an adjusted profit of 28 to 30 cents per share, compared with its previous forecast of 39 to 41 cents per share.
Rising costs of key raw materials and lower demand have forced many pulp and paper producers to curtail production and cut jobs during the last two years..
Wausau Paper, which shut its Brokaw paper mill in Wisconsin and cut 450 jobs last year, estimated adjusted profit for the quarter ended September to be in mid-single digits, compared with double-digits a year earlier.
The company's largest shareholder in January had asked the board to consider strategic alternatives, including a sale.
The Mosinee, Wisconsin-based company's shares were down 5 percent after the bell. They closed at $9.16 on Monday on the New York Stock Exchange.
- Hamas defends Gaza ambush blamed for ending ceasefire |
- Bible left in North Korean sailor's club triggered U.S. tourist's arrest
- Tape emerges of Clinton discussing bin Laden day before 9/11 attack
- U.S. House passes border-security funding bill to speed deportations |
- Exposure of health workers weakens Africa's Ebola fight