Kruger's Q3 net income drops to C$14.2M from C$20M in year-ago period, primarily due to higher interest, depreciation expenses related to tissue project in Memphis, Tennessee; revenue up 4.9% year-over-year, to C$243.8M, helped by new tissue capacity

LOS ANGELES , November 13, 2013 () –

Kruger Products LP saw its net income for the third quarter shrink to C$14.2 million from $20 million a year earlier, according to the company’s results released on Nov. 13 by KP Tissue Inc.
 
KP Tissue, which was created to hold a partnership interest in Kruger Products, has a stake of 16.8% as of September 29, according to the Nov. 13 press release, which was embargoed from U.S. news outlets.
 
Kruger Products’ third-quarter net income decrease from a year earlier was attributed primarily to higher interest and depreciation expenses related to its new tissue machine project in Memphis, Tennessee. 
 
These expenses, however, were partially offset by a third-quarter deferred tax credit related to its U.S. operations, according to the company.
 
Third-quarter revenue increased year-over-year by 4.9%, to $243.8 million. This was helped by increased sales volume, mostly from the consumer segment and related to output from the new Memphis tissue machine.
 
The ramp-up of the new tissue machine is progressing well, with “product quality meeting or exceeding expectations,” said Mario Gosselin, CEO of KP Tissue and Kruger Products, in the press release.
 
The company stated that it continued to expand its overall market share in Canada and maintained its position as No. 1.
 
Kruger Products is also making progress with its strategy to lessen the impact of higher commodity and energy costs and expects to see the full effect of this in first-quarter 2014, said Gosselin.
 
The company’s full third-quarter results can be accessed on its website at kptissueinc.com
 
The primary source of this article is KP Tissue, Mississauga, Ontario, on Nov. 13, 2013.


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