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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) October 8, 1998
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SCHWEITZER-MAUDUIT INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 1-13948 62-1612879
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(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
100 NORTH POINT CENTER EAST, SUITE 600 30022-8246
ALPHARETTA, GEORGIA ----------
- ------------------- (Zip Code)
(Address of principal executive offices)
(Registrant's telephone number, including area code): 1-800-514-0186
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Not Applicable
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(Former name or former address, if changed since last report.)
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ITEM 5. OTHER EVENTS
The information in the registrant's press release dated October 8, 1998 attached
as Exhibit 99 incorporated in this Item 5 by reference.
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits.
See the Index to Exhibits that appears at the end of this document and
which is incorporated by reference herein.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
SCHWEITZER-MAUDUIT INTERNATIONAL, INC.
(Registrant)
By: /s/ WILLIAM J. SHARKEY
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William J. Sharkey
General Counsel and Secretary
October 8, 1998
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SCHWEITZER-MAUDUIT INTERNATIONAL, INC.
CURRENT REPORT ON FORM 8-K
DATED OCTOBER 8, 1998
INDEX TO EXHIBITS
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<CAPTION>
EXHIBIT NO. DESCRIPTION
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99 Press Release of Schweitzer-Mauduit International, Inc. issued October
8, 1998.
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EXHIBIT 99
PRESS RELEASE Contact: Bill Foust Paul Roberts
770-569-4203 770-569-4277
SCHWEITZER-MAUDUIT EXPECTS THIRD QUARTER NET INCOME
TO BE $.41 TO $.46 PER SHARE
Alpharetta, GA, October 8, 1998. Schweitzer-Mauduit International, Inc. (NYSE:
SWM) today announced that it anticipates diluted earnings per share for the
third quarter of 1998 to be in the range of $.41 to $.46 per share. Third
quarter earnings in 1997 were $.68 per share.
Wayne H. Deitrich, Chairman of the Board and Chief Executive Officer, said that
"economic difficulties in several overseas markets will unfavorably affect
Schweitzer-Mauduit's performance during the third quarter. Shipments to China,
Russia and southeast Asia have been reduced because of import controls, currency
convertibility and decreased demand. With weakness in demand, pricing has come
under pressure in some markets. Results for the quarter will also reflect the
impact of planned annual mill maintenance downs at Spotswood, New Jersey and St.
Girons, France."
Operating profit for the third quarter of 1998 is expected to be approximately
$15 to $16 million, roughly $5 to $6 million less than in the third quarter of
1997. Approximately one-half of the shortfall versus the prior year quarter will
be in the French paper operations, with the balance of the shortfall in the U.S.
business. The lower French paper business operating profit for the quarter is
the result of decreased sales volumes, principally to developing countries,
lower average selling prices, and the impact of the planned mill-wide
maintenance down at the St. Girons mill. The decline in operating profit in the
U.S. for the quarter is attributable to poor start-up operations associated with
a mill-wide maintenance down at the Spotswood mill, expenses associated with new
integrated computer systems and somewhat lower average selling prices. Operating
profit for the French reconstituted tobacco operations in the quarter is
expected to be approximately at the prior year level. The Brazilian operations
are expected to achieve roughly break-even operating profit for the third
quarter.
In addition to the operating profit decline, net interest costs are expected to
be approximately $900,000 higher than the prior year quarter because of
financing expenses related to the acquisition of two tobacco-related paper
suppliers in February, 1998. The increase in the French income tax rate from 36
2/3 percent reported in the third quarter of 1997 to 41 2/3 percent in 1998 will
have an unfavorable impact of approximately $500,000 on net income for the
quarter.
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Mr. Deitrich added that, "the difficult market conditions experienced in the
third quarter of 1998 are expected to continue for the foreseeable future. Our
growth has been tied to increasing demand for ventilated and blended cigarettes,
largely in developing countries. With demand weakening, the pricing of our
products may continue to be under pressure. In this environment, we will
aggressively pursue cost reduction opportunities, tightly control capital
spending and utilize available cash for share repurchase. During the third
quarter of 1998, approximately 156,000 shares of Schweitzer-Mauduit's common
stock were repurchased."
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. It also manufactures specialty papers for use in alkaline batteries,
vacuum cleaner bags, business forms, and printing and packaging applications.
Schweitzer-Mauduit and its subsidiaries conduct business in over 80 countries
and employ 3,400 people worldwide, with operations in the United States, France,
Brazil and Canada.
Certain comments contained in this news release concerning the business outlook
and anticipated financial and operating results of the Company constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995 and are subject to the safe harbor created by that
Act. The forward-looking statements are based upon management's expectations and
beliefs concerning future events impacting the Company. There can be no
assurances that such events will occur or that the Company's results will be as
estimated. Many factors outside the control of the Company also could impact the
realization of such estimates. Such factors are discussed in more detail in the
Company's SEC reports, including the Company's Annual Report on Form 10-K for
the year ended December 31, 1997.
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