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EXHIBIT 99
PRESS RELEASE
Contact: Bill Foust Paul Roberts
770-569-4203 770-569-4277
SCHWEITZER-MAUDUIT EXPECTS SECOND QUARTER EARNINGS
TO BE $.40 TO $.42 PER SHARE
Alpharetta, GA, July 19, 2000. Schweitzer-Mauduit International, Inc. (NYSE:SWM)
today announced that it anticipates diluted earnings per share for the second
quarter of 2000 to be in the range of $.40 to $.42 per share. Second quarter
diluted earnings per share in 1999 were $.45.
Wayne H. Deitrich, Chairman of the Board and Chief Executive Officer, said that
"our earnings in the second quarter of 2000 were unfavorably impacted by a
significant reduction in gross profit margin partially offset by a lower
effective income tax rate. The decline in gross profit margin was primarily due
to higher wood pulp and purchased energy costs. The average per ton cost of wood
pulp increased by approximately 30 percent in the second quarter of 2000
compared with the second quarter of 1999, making it the fifth consecutive
quarter of wood pulp cost increases. Sales volumes were higher than in the prior
year quarter, but we continue to experience a lag in our ability to offset cost
increases with higher selling prices."
Mr. Deitrich added that "our results for the balance of 2000 will be dependent
upon a further strengthening of sales volumes and an improvement from our
current gross profit margin. It is likely that diluted earnings per share for
full year 2000 will be somewhat below the 1999 results with the second half of
2000 expected to be stronger than the first half."
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, overlay products, business forms and printing and packaging
applications. Schweitzer-Mauduit and its subsidiaries conduct business in over
90 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, 1999.
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