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chweitzer-Mauduit International, Inc. (NYSE: SWM - News) today announced the formalization of a supply agreement with British American Tobacco Australia Limited (BATA) for papers to produce Lower Ignition Propensity (LIP) cigarettes for the Australian market.
The company is pleased to have formed a supply partnership with BATA. The multi-year supply agreement covers papers that utilize Schweitzer-Mauduit's Alginex® water-based technology, a proprietary process. Mr. Otto Herbst, SWM Chief Operating Officer commented, "We are very satisfied to have reached this agreement with BATA and believe this is a significant step in the strengthening of our global partnership."
Australia has passed legislation that requires all cigarettes manufactured in or imported into Australia to be LIP compliant effective March 23, 2010.
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* Pretax profit rose 38 percent to 791 million crowns
* Expects H2 sales, operating profit to beat 2008
* Key snuff margin drops, but cigar margin shines
* CEO says Q2 cigar margin not sustainable
* Shares up 3.0 percent
Swedish Match AB [publ] announced today that it has reached an agreement to sell its South African operations, Swedish Match South Africa (Proprietary) Limited (“SMSA”) to Philip Morris International [NYSE/Euronext Paris: PMI] (“PMI”) for a purchase price amounting to 1.75 billion ZAR.
As President Barack Obama moves to ease restrictions on trade with Cuba, cigar lovers are savoring the prospect of legally lighting up a smoke that has long required a black- market connection and a willingness to flout the law. . . .
The possible end to the 47-year-old embargo on Cuba trade has intensified a legal and lobbying fight between cigar makers Swedish Match AB of Stockholm and Imperial Tobacco Group Plc of Bristol, England. Each wants exclusive rights to sell Cuban-made brands in the U.S., the world’s largest market for premium cigars.
Swedish Match sells cigars in the U.S. made in Honduras and the Dominican Republic under Cuban brand names. It bought the brands from families that fled Cuba after Fidel Castro seized their cigar companies in the 1960s. Imperial distributes Cuban- made cigars under many of the same names to the rest of the world through an agreement with the Cuban government monopoly, Cubatabaco.
“Before serious commerce resumes, this is going to have to be resolved,” said Robert Muse, a Washington lawyer who advises clients on Cuba-related issues.
Schweitzer-Mauduit International, Inc. (NYSE: SWM) announced today expected improvement in first quarter 2009 financial results and the planned closure of its finished tipping paper production facility in France. . . .
Mr. Frederic Villoutreix, Chairman of the Board and Chief Executive Officer, commented that, "We believe the expected improvement in first quarter results validates our strategy to revitalize our base tobacco-related paper business while aggressively growing the franchises for our higher value lower ignition propensity cigarette paper and reconstituted tobacco leaf products. The divestiture action being announced today, although regrettable in terms of the impact on the employees and communities affected, further advances this strategy and highlights our resolve to rationalize our global manufacturing footprint and re-focus resources to achieve leading positions in core product categories that provide opportunity for competitive advantage. Following the divestiture of our finished tipping paper facility in France, all of Schweitzer-Mauduit's focus will be on product lines that represent core technologies and in which we hold a number one or two world-wide market position, whether measured by share of the market or major customer's requirements."
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.
Schweitzer-Mauduit International, Inc. (NYSE: SWM) today reported a fourth quarter 2008 net loss of $6.8 million compared to net income of $2.5 million during the fourth quarter of 2007. The loss per share was $0.44 compared to diluted earnings per share of $0.16 in the prior-year quarter. Restructuring and impairment expenses decreased earnings during the fourth quarter of 2008 by $13.8 million before taxes, or $0.58 per share. In 2008, fourth quarter earnings without restructuring and impairment expenses were $0.14 per share, a decrease of 2 cents relative to the diluted earnings excluding restructuring and impairment expense of $0.16 per share for the fourth quarter of 2007.
Frederic Villoutreix, Chairman of the Board and Chief Executive Officer, commented that, "Schweitzer-Mauduit's results for the fourth quarter of 2008 contained items that offset the underlying continued improvement in our business. These items included asset impairment charges, which are included with restructuring expenses, a deferred income tax effect from a reorganization of legal entities and severance expenses associated with management changes primarily in France. We continued to realize earnings improvement from increased sales volumes for reconstituted tobacco leaf and cigarette paper for lower ignition propensity cigarettes, and we began to realize favorable foreign currency impacts and a lower level of inflationary cost increases.
Schweitzer-Mauduit International, Inc. (NYSE: SWM) today announced the following new management position and changes effective today:
Peter J. Thompson, age 46, current Vice President - Strategic Planning, will be assuming the new position of Treasurer, Chief Financial and Strategic Planning Officer, reporting to Frederic Villoutreix, Chairman of the Board and Chief Executive Officer. Mr. Thompson had served as Chief Financial Officer and Treasurer from August 2006 to August 2008 and as Vice President - Strategic Planning from August 2008 to the present. Pete has over 12 years of service with Schweitzer-Mauduit. Previously, he was President - U.S. Operations from November 1998 to August 2006. As part of the restructuring of its financial management organization, the Company also recently created the positions of Corporate Treasury Director, located in Alpharetta, and Finance and Treasury Director - Asia, located in the Company's new Philippine Regional Operating Headquarters.
Mr. Thompson is replacing Mr. Torben Wetche who joined the Company in August 2008 as Chief Financial Officer and Treasurer.
Schweitzer-Mauduit International, Inc., (NYSE: SWM) today announced the establishment of the new position of Senior Corporate Vice-President -- Global LIP and the appointment of Mr. Dean M. McCaskill to this position reporting to Otto Herbst, Chief Operating Officer.
In announcing the decision to establish this position, Frederic Villoutreix, Chairman of the Board and Chief Executive Officer commented, "As the demand for paper used in Low Ignition Propensity (LIP) cigarettes grows from North America into Europe and globally into other regions of the world, we have determined that we need to establish a designated business unit to satisfy market demands. This new role will be responsible for the world-wide manufacturing facilities and developing and implementing our sales and marketing plans for this product group. In hiring Dean, we believe we have recruited the person with the necessary skills and international background to reach our global LIP objectives to become the leading innovator and supplier of these papers to the tobacco industry."
Following the November 11th announcement of the retirement of Wayne H. Deitrich, Chairman of the Board and Chief Executive Officer on December 31, 2008 and Frederic Villoutreix named his successor on January 1, 2009, Schweitzer-Mauduit International, Inc., (NYSE: SWM) today announced these additional senior management changes also effective January 1, 2009:
Otto R. Herbst, President, the Americas, will become Chief Operating Officer reporting to Frederic Villoutreix, Chairman of the Board and Chief Executive Officer. Mr. Herbst, age 49, has been President, the Americas since August, 2006. He joined SWM in April, 1999 as President, Brazilian Operations.
Schweitzer-Mauduit International, Inc. (NYSE: SWM) today reported third quarter 2008 net income of $6.7 million compared with a net loss of $4.3 million during the third quarter of 2007. Diluted earnings per share were $0.43 compared with a diluted loss per share of $0.27 in the prior-year quarter. Restructuring expenses decreased earnings per share during the third quarters of 2008 and 2007 by $0.11 and $0.73, respectively. Excluding restructuring expenses, earnings per share increased 17 percent to $0.54 for the third quarter of 2008 from $0.46 during the third quarter of 2007.
Wayne H. Deitrich, Chairman of the Board and Chief Executive Officer, commented that, "The third quarter 2008 financial results for Schweitzer-Mauduit improved as expected relative to both the second quarter of 2008 and the third quarter of 2007. Earnings increased primarily due to higher sales volumes for reconstituted tobacco leaf, or RTL, and cigarette paper used in lower ignition propensity, or LIP, cigarettes. We also benefited from the January 2008 purchase of the 28 percent minority interest of LTR Industries, S.A., or LTRI. Operation of the rebuilt paper machine at our Papeteries de Mauduit, or PdM, mill in France, improved during the third quarter, but still contributed to an increase in production cost versus last year. We continue to experience significant inflationary cost increases, especially energy, and unfavorable currency impacts. As a result of increased earnings benefiting cash generation and continued reductions in capital spending, we lowered debt during the third quarter."
Schweitzer-Mauduit International, Inc. (NYSE: SWM) today announced changes to its Brazilian operations including the exit of the coated papers business and a resulting decrease of approximately 100 employees, or 16 percent of the current workforce, both effective immediately. This announcement will result in restructuring expenses totaling approximately $3.3 million comprised of $1.8 million in fixed asset impairment charges and $1.5 million for cash employee severance and other payments. The restructuring expenses are expected to be recognized during the second and third quarters of 2008. . . .
we have decided to exit the coated papers business in Brazil and to concentrate on our core tobacco-related fine papers business. We expect that the combination of exiting the coated papers business in Brazil, in addition to the previously announced plan to raise the selling prices of tobacco-related fine papers throughout the North, Central and South American markets, will restore a modest level of profitability in our Brazilian business by early 2009.
Schweitzer-Mauduit International, Inc. (NYSE: SWM) today announced price increases for paper products sold in North, Central and South America effective in July 2008.
These price increases are necessary to partially recover significant acceleration in costs caused by the combination of higher purchase prices for wood pulp, energy, chemicals and transportation along with the negative cost impact of currency. The announced selling price increases will approach 20 percent.
Schweitzer-Mauduit International, Inc. (NYSE: SWM) today reported a first quarter 2008 net loss of $1.2 million compared with net income of $4.2 million during the first quarter of 2007. The diluted loss per share was $0.08 compared with diluted earnings per share of $0.27 in the prior-year quarter. Restructuring expenses decreased earnings per share during the first quarters of 2008 and 2007 by $0.09 and $0.11, respectively. Excluding restructuring expenses, earnings per share of $0.01 for the first quarter of 2008 declined relative to diluted earnings per share of $0.38 for the first quarter of 2007.
Wayne H. Deitrich, Chairman of the Board and Chief Executive Officer, commented that, "The first quarter 2008 financial results for Schweitzer-Mauduit were disappointing. Although we expected the first quarter of 2008 to be the lowest earnings quarter of the year, results were more severely impacted than expected by significant inflationary cost increases, especially energy, combined with a longer than planned start-up of a rebuilt paper machine in France and unfavorable currency impacts. We realized increased earnings from higher sales volumes of reconstituted tobacco leaf products and cigarette paper used in lower ignition propensity, or LIP, cigarettes, but this was not enough to offset negative changes in our business. During the first quarter, we completed the 35 million euro acquisition of the 28 percent minority share in our reconstituted tobacco leaf business in France.
Schweitzer-Mauduit International, Inc. (NYSE: SWM) will issue a press release announcing the Company's first quarter 2008 results prior to the market opening on May 8, 2008. In conjunction with the earnings release, you are invited to listen to the Company's conference call that will be broadcast live over the Internet.
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.