ATLANTA – Paper and tissue manufacturer Georgia-Pacific Corp. (GP) cited strength in its building products business as it reported a sharply higher second-quarter profit on a 6 percent jump in sales.
But the results, announced Thursday, missed Wall Street expectations by a penny a share.
The Atlanta-based maker of Brawny paper towels said it earned $220 million, or 84 cents a share, for the three months ending June 30, compared to a profit of $61 million, or 24 cents s share, in the same period a year ago.
Excluding one-time items — a gain on asset sales and charges related to its debt, restructuring and severance costs — Georgia-Pacific said it earned $239 million, or 91 cents a share. On that basis, analysts surveyed by Thomson First Call were expecting earnings of 92 cents a share.
Revenue in the April-June period was $5.19 billion, compared to $4.88 billion recorded a year ago.
"We are pleased with our second quarter results and with the continuing execution by our businesses on our commitments to shareholders and customers," said A.D. Correll, Georgia-Pacific chairman and chief executive. "Our building products business, which set a new quarterly profit record, remains robust and we see consistent signs that our consumer products business strategy is working."
Correll said he is confident that favorable trends in the company's paper businesses will further strengthen throughout the rest of the year. He expects the building products business to remain solid.
For the first six months of the year, Georgia-Pacific reported earnings of $367 million, or $1.40 a share, compared to a profit of $31 million, or 12 cents a share, in the same period a year ago. Six-month revenue was $10.41 billion, compared to revenue of $9.32 billion in the year-ago period.
Georgia-Pacific is one of the world's leading manufacturers of tissue, packaging, paper, building products, pulp and related chemicals. It employs about 55,000 people in North America and Europe.
Besides Brawny and Quilted Northern (search), its consumer tissue brands include Angel Soft, Mardi Gras and Vanity Fair.
Shares of Georgia-Pacific fell 75 cents, or 2.2 percent, to $33.70 Thursday on the New York Stock Exchange (search).