RockTenn recently reported a loss for the quarter ended June 30, 2011 of $0.60 per diluted share due to Smurfit-Stone acquisition related charges. The Company's adjusted earnings were $1.29 per diluted share, up 13% compared to the prior year quarter adjusted earnings of $1.14 per diluted share.
RockTenn Chairman and Chief Executive Officer James A. Rubright stated, "Our 13% adjusted earnings increase over the prior year quarter and 24% increase over the immediately preceding quarter resulted from the earnings accretion from the 34 days of operating results in the quarter following the acquisition of Smurfit-Stone on May 27, 2011. We expected this acquisition to be highly accretive to earnings, and it has been and should continue to be so. We are ahead of our expectations on capturing synergies from the acquisition and estimate that by quarter end we had achieved a run rate of synergy capture of between $75 million and $80 million."
Total tons produced in the third quarter of fiscal 2011 increased by approximately 643,000 tons over the prior year quarter due to the Smurfit-Stone acquisition. The increase included an increase in recycled paperboard tons, which was partially offset by lower tons at the bleached paperboard mill in Demopolis, Alabama due to a scheduled major maintenance outage.
Corrugated Packaging segment net sales increased $524.0 million to $734.5 million in the third quarter of fiscal 2011 compared to the prior year quarter, due primarily to the Smurfit-Stone acquisition. Segment income, adjusted to eliminate $55.4 million of pre-tax acquisition inventory step-up, increased to $80.0 million in the third quarter of fiscal 2011 compared to $36.7 million in the prior year quarter. Corrugated segment EBITDA margin was 16.9% for the quarter.
Consumer Packaging segment net sales increased $36.1 million in the third quarter of fiscal 2011 compared to the prior year quarter, primarily due to display sales from the Smurfit-Stone acquisition, higher paperboard selling prices, increased recycled paperboard tons shipped and higher folding carton selling prices and volumes. Segment income decreased $7.9 million to $61.1 million in the third quarter of fiscal 2011 primarily due to the bleached paperboard mill outage and higher fiber, chemical, freight and energy costs that were partially offset by lower virgin fiber costs.
Recycling and Waste Solutions segment net sales increased $106.7 million over the prior year third quarter to $147.4 million primarily due to the Smurfit-Stone acquisition. Segment income was $4.6 million in the third quarter of fiscal 2011 compared to $2.2 million in the third quarter the prior year.
Net cash provided by operating activities in the third quarter of fiscal 2011 was $145.7 million compared to $100.3 million in the third quarter of the prior year
