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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) March 30, 1998
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SCHWEITZER-MAUDIT 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 releases dated March 30, 1998, March
31, 1998 and April 1, 1998 attached as Exhibits 99.1, 99.2 and 99.3,
respectively, 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
April 6, 1998
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SCHWEITZER-MAUDUIT INTERNATIONAL, INC.
CURRENT REPORT ON FORM 8-K
DATED MARCH 30, 1998
INDEX TO EXHIBITS
<TABLE>
EXHIBIT NO. DESCRIPTION
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<S> <C>
99.1 Press Release of Schweitzer-Mauduit International, Inc. issued March 30, 1998.
99.2 Press Release of Schweitzer-Mauduit International, Inc. issued March 31, 1998.
99.3 Press Release of Schweitzer-Mauduit International, Inc. issued April 1, 1998.
</TABLE>
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EXHIBIT 99.1
PRESS RELEASE CONTACT: BILL FOUST PAUL ROBERTS
770-569-4203 770-569-4277
SCHWEITZER-MAUDUIT EXPECTS FIRST QUARTER EARNINGS
TO BE $.55 TO $.60 PER SHARE
Alpharetta, GA, March 30, 1998. Schweitzer-Mauduit International, Inc. (NYSE:
SWM) today announced that it anticipates diluted earnings per share for the
first quarter of 1998 to be in the range of $.55 to $.60 per share. First
quarter earnings in 1997 were $.69 per share. The company said that, excluding
the unfavorable impact of new computer systems expenses in the United States
and an increase in corporate income tax rates in France, first quarter net
income would be approximately at the prior year level. Strong pre-tax earnings
growth in France is expected to approximately offset a decline in earnings from
the United States business unit, exclusive of the new computer systems expenses.
Wayne H. Deitrich, Chairman of the Board and Chief Executive Officer, said that
"as previously announced, our earnings in 1998 are being unfavorably impacted
by expenses related to new computer systems in the United States and by higher
corporate income tax rates in France. Increased expenses associated with the
amortization of deferred software costs, increased operating costs for the new
computer systems, and systems start-up expenses will have an estimated negative
impact of $.08 per share in the first quarter. The higher tax rates in France
are expected to lower earnings by approximately $.05 per share in the quarter.
Our business outside the United States continues to be strong. Our French
operations are expected to achieve pre-tax earnings growth of approximately 15
percent for the quarter because of increased unit sales. However, the weakness
experienced in the U.S. market during 1997 has continued into 1998, which will
roughly offset the pre-tax gains of our French operations. Sales volumes in the
U.S. business unit are expected to be 8 to 10 percent lower than in the
comparable prior year quarter. Earnings from acquisitions completed in Brazil
and France in February 1998 are expected to be approximately offset by higher
interest expense related to the acquisitions. The outlook for the balance of
1998 will be dependent upon recovery of the U.S. business, which is uncertain
at this time, and the continuing strength of our French operations."
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 3,550 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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EXHIBIT 99.2
PRESS RELEASE CONTACT: BILL FOUST PAUL ROBERTS
770-569-4203 770-569-4277
SCHWEITZER-MAUDUIT INTERNATIONAL ANNOUNCES FORTY-FIVE DAY
EXTENSION TO SUPPLY AGREEMENT WITH PHILIP MORRIS
Alpharetta, GA, March 31, 1998. Schweitzer-Mauduit International, Inc.
(NYSE:SWM) today announced that Philip Morris and SWM have agreed to extend the
initial term of their fine papers supply agreement from March 31, 2000 to May
15, 2000 in order to extend a March 31, 1998 notice deadline in the agreement
for an additional forty-five days, to May 15, 1998.
The extension is intended to allow both parties additional time to complete an
agreement on changes to the current supply agreement. The new agreement is
expected to cover both the ongoing supply of fine papers and related supply
arrangements.
Schweitzer-Mauduit and Philip Morris entered into a strategic supply agreement
effective January 1, 1993, for providing fine papers for Philip Morris' U.S.
Operations. Per the terms of the agreement, as amended, by March 31, 1998,
either party could have served notice to initiate a two year phase-out of the
agreement. If neither side served such notice, the agreement would have
automatically renewed for another three years.
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 3,550 people worldwide, with operations in the United States, France,
Brazil and Canada.
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EXHIBIT 99.3
PRESS RELEASE CONTACT: BILL FOUST
770-569-4203
PAUL ROBERTS
770-569-4277
SCHWEITZER-MAUDUIT ELECTS JEAN-PIERRE LE HETET TO NEW POSITION
OF CHIEF OPERATING OFFICER
Alpharetta, GA, April 1, 1998. Effective today, the Schweitzer-Mauduit
International, Inc. (NYSE:SWM) Board of Directors elected Jean-Pierre Le Hetet,
Chief Operating Officer with responsibility for all operations reporting to
Wayne Deitrich, Chairman of the Board and Chief Executive Officer.
Mr. Deitrich stated, "Schweitzer-Mauduit, including each of its subsidiaries,
is becoming more geographically diverse with our recent acquisitions. In
addition, we are having to become more coordinated in interfacing with our
major customers who are multinational and becoming more global in their
procurement practices. Today, we have eight manufacturing facilities on three
continents as well as flax fiber procurement and processing facilities in two
countries. Also, we are selling to about 180 customers or customer locations
in more than 80 countries. With accountability for all our operations, the
Chief Operating Officer will be responsible for accelerating the synergy and
coordination of our mills, research & development, sales and marketing
functions to best serve our customers globally."
Mr. Le Hetet, age 54, has been a member of the Schweitzer-Mauduit Board of
Directors since the December 1, 1995 spin-off from Kimberly-Clark Corporation.
Since 1991, he has been President-French Operations. Mr. Le Hetet has eighteen
years of service with the company and its predecessors.
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 approximately 3,550 people worldwide, with operations in the United
States, France, Brazil and Canada.
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