BOISE — Boise Inc. reported a net loss of $1.2 million for the first quarter of 2013, down from a net profit of $21.3 million during the same quarter last year. Sales totaled $607.3 million, down from $644.8 million a year earlier.
The paper-products maker said most of the loss $22.4 million is due to anticipated cold outage costs that come up every five years at the companys mill in DeRidder, La. That work came in on budget, CEO Alexander Toeldte said, but first-quarter results still fell short of expectations. We experienced unfavorable mix changes in our packaging segment that partially offset the benefits of the fall 2012 liner-board price increase, Toeldte said. In addition, decreasing prices for uncoated freesheet negatively affected our results in paper.
Boise Inc., which split off from Boise Cascade in 2008, makes packaging and paper products including corrugated containers and printing paper. Toeldte said the company will invest between $110 million and $120 million to convert an idled newsprint machine at DeRidder to produce lightweight liner-board and corrugated material. The project, scheduled for completion in mid-2014, also will add a pulping facility to the mill, he said. Separately, a Minnesota newspaper reported that Boise Inc. plans to lay off 265 paper workers at a plant in International Falls. The Mesabi Daily News said the company will idle two production lines, permanently terminate the workers by Oct. 1, and keep 580 other workers.
The Associated Press contributed.