SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (D) OF THE
THE SECURITIES ACT OF 1934
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DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): April 3, 2003
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BUCKEYE TECHNOLOGIES INC.
(Exact name of registrant as specified in its charter)
DELAWARE 33-60032 62-1518973
(State of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.)
1001 Tillman Street, Memphis, Tennessee 38112
(Address of principal executive offices)
Registrant's telephone, including area code (901) 320-8100
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ITEM 5. OTHER EVENTS
On April 3, 2003, the Registrant issued the following press release
announcing that the Lumberton, North Carolina plant will discontinue producing
cotton linter pulp by mid-2003 and conference call regarding the partial closure
and recent management changes.
News from
Buckeye
FOR IMMEDIATE RELEASE
Contacts: Kris Matula, Senior Vice President
901-320-8588
Gordon Mitchell,
Investor Relations Manager
901-320-8256
Website: www.bkitech.com
BUCKEYE ANNOUNCES PARTIAL SHUTDOWN
OF LUMBERTON, N.C. PLANT
MEMPHIS, TN April 3, 2003 - Buckeye Technologies Inc. (NYSE:BKI) today announced
that it will discontinue producing cotton linter pulp at its Lumberton, North
Carolina facility by mid-2003. The Company will continue to produce cosmetic
cotton products at that location.
Buckeye Chairman, David B. Ferraro, stated, "While cotton linter pulp is a core
Buckeye business, we can no longer economically justify operating a facility
which can only produce products for paper applications. The cotton fiber paper
industry has contracted by about one-third since the late 1990's. Buckeye will
better meet customer needs by consolidating U.S. cotton linter pulp production
at our larger Memphis, Tennessee facility which is capable of producing products
for both chemical and paper applications.
This consolidation will enable us to improve our overall cotton linter pulp
operating results by at least $6 million annually on a going basis and reduce
working capital needs by about $10 million. The more efficient operating
configuration will improve our results beginning in the second half of fiscal
year 2004."
Mr. Ferraro further commented, "It is extremely unfortunate that business
conditions are forcing us to terminate approximately 100 dedicated employees.
The Company will incur one-time costs in the April-June quarter of approximately
$2 million for the partial closure, including related employee termination
expenses. Additionally, we will include a non-cash asset impairment charge which
relates primarily to this facility of about $18 million after tax in our
January-March financial results."
Buckeye has scheduled a conference call for 1:00 PM Central Time Friday, April
4, to further discuss the Lumberton plant partial shutdown and the Company's
recent organizational changes. All interested parties are invited to dial in at
888-855-5428 (U.S.) or 719-457-2665 (International).
Buckeye, a leading manufacturer and marketer of specialty cellulose and
absorbent products, is headquartered in Memphis, Tennessee, USA. The Company
currently operates facilities in the United States, Germany, Canada, Ireland and
Brazil. Its products are sold worldwide to makers of consumer and industrial
goods.
Certain matters discussed in this press release may constitute forward-looking
statements within the meaning of the federal securities laws that involve risks
and uncertainties, including but not limited to economic, competitive,
governmental, and technological factors affecting the Company's operations,
financing, markets, products, services and prices, and other factors. For
further information on factors which could impact the Company and the statements
contained herein, please refer to public filings with the Securities and
Exchange Commission.
CONFERENCE CALL
for
BUCKEYE TECHNOLOGIES INC.
Partial Shutdown of Lumberton, N.C. Plant
and Recent Management Changes
We have scheduled a conference call for
Friday, April 4, 2003
1:00 p.m. Central
Management participating on the call will include
David B. Ferraro, Chief Executive Officer
Robert E. Cannon, Senior Director
John B. Crowe, President and Chief Operating Officer
Kristopher J. Matula, Sr. Vice President, Nonwovens and Corporate Strategy
Gayle L. Powelson, Sr. Vice President and Chief Financial Officer
Paul N. Horne, Sr. Vice President, Cotton Cellulose
Gordon B. Mitchell, Investor Relations Manager
All interested parties are invited to listen to the audio conference call live
or tape delayed via the website WWW.STREETEVENTS.COM or via the Company's
website homepage at WWW.BKITECH.COM. The replay will be archived on these
websites through May 4, 2003.
In addition, persons interested in listening by telephone may dial in at (888)
855-5428 within the United States. International callers should dial (719)
457-2665. Participants should call no later than 12:45 a.m. CT.
To listen to the telephone replay of the conference call, dial (888) 203-1112 or
(719) 457-0820. The passcode is 142286. The telephone replay will be available
until midnight April 9, 2003.
A press release was issued via Business Wire on April 3. If you did not receive
a copy of this release, please contact Gordon Mitchell at (901) 320-8256.
We look forward to your participation.
BUCKEYE TECHNOLOGIES INC.
/S/ GAYLE L. POWELSON
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Gayle L. Powelson
Senior Vice President, Chief Financial Officer
April 3, 2003