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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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 20, 2000
CARAUSTAR INDUSTRIES, INC.
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(Exact Name of Registrant as Specified in its Charter)
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North Carolina 0-20646 58-1388387
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(State or Other Jurisdiction (Commission File Number) (I.R.S. Employer Identification No.)
of Incorporation)
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3100 Joe Jerkins Boulevard
Austell, Georgia 30106-3227
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(Address of Principal Executive Offices)
(Zip Code)
(770) 948-3101
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(Registrant's Telephone Number, Including Area Code)
Not Applicable
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(Former name or address, if changed from last report)
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Item 5. Other Events.
Caraustar Industries, Inc. issued press releases on March 20, 2000 (a
copy of which is attached as Exhibit 99.1), the contents of which are
incorporated herein by reference.
Item 7. Exhibits.
The following exhibits are filed as part of this report.
Exhibit 99.1 -- Press release dated March 20, 2000
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.
Date: March 20, 2000
CARAUSTAR INDUSTRIES, INC.
By: /s/ H. Lee Thrash, III
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H. Lee Thrash, III
Vice President and
Chief Financial Officer
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Exhibit Index
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Exhibit Exhibit No.
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Press release dated March 20, 2000 99.1
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[Caraustar Industries, Inc. Letterhead]
FOR IMMEDIATE RELEASE
MARCH 20, 2000
CONTACT: H. Lee Thrash, III
Chief Financial Officer
(770) 948-3101
CARAUSTAR EXPECTS LOWER FIRST QUARTER EARNINGS AND
SIGNIFICANT IMPROVEMENTS IN QUARTERLY RESULTS
FOR THE SECOND, THIRD AND FOURTH QUARTERS OF 2000
ATLANTA, GEORGIA - Caraustar Industries, Inc. (NASDAQ-NMS Symbol: CSAR) today
announced that it expects first quarter 2000 results to be approximately $0.10
to $0.12 per share below the $0.36 per share reported in the fourth quarter of
1999, excluding restructuring charges. The company has continued to experience
lower unit sales volume that began in December of 1999. Seasonal and weather
related slowdowns in gypsum facing paper shipments will result in about a
9,000-ton reduction in unit volume for the first quarter compared to the fourth
quarter of 1999. Increases in recovered fiber costs in February and March have
temporarily squeezed operating margins by approximately $10 per ton compared to
the fourth quarter of 1999. The loss at the company's Sprague, Connecticut
paperboard mill is also expected to widen by approximately $1.0 million in the
first quarter compared to the fourth quarter of 1999 as a result of a week long
shut down for boiler repairs and continued margin pressures.
Thomas V. Brown, president and chief executive officer of Caraustar, commenting
on the above factors, said, "We are confident that our quarterly earnings will
be significantly higher in each of the last three quarters of 2000 as a result
of a number of initiatives that we have underway. These include improvement in
operating income from closing the Baltimore mill in February, price increases
already announced and implemented, reduction of operating losses at the Sprague
mill, increased production to normal level at the Cumberland wallboard joint
venture and the late July start-up of our joint venture gypsum facing paper mill
in Newport, Indiana."
Caraustar will be hosting a Webcast on this announcement beginning at 9:30 a.m.
(EST) Monday, March 20, 2000. In order to listen to the Webcast of its
conference call, participants can log on at http://www.streetevents.com or log
on at http://www.caraustar.com and look for the Webcast button/icon on the
company's homepage.
This press release contains certain "forward-looking statements," within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, that represent the company's expectations,
anticipations or beliefs, including statements regarding expected operating
results, the expected impact of price increases, anticipated improvement in
market conditions and expectations of, and projected amounts of, improved
performance in future quarters. The words "expect," "will," "would" and similar
expressions may identify such forward-looking statements. These statements
involve risks and uncertainties that could cause actual results to differ
materially from those expressed or implied in such forward-looking statements.
Among the key factors that could cause such results to vary include the transfer
of the Chesapeake mill's customer relationships to other Caraustar mills,
fluctuations in raw material prices and the economy in general, variances in the
amount and timing of expected price increases, delays in the completion of
capital projects and start-up of new operations described in this press release,
the degree and nature of competition, demand for Caraustar's products, the
company's ability to complete acquisitions and successfully integrate the
operations of acquired businesses, changes in governmental regulations and
numerous other factors discussed in Caraustar's filings with the Securities and
Exchange Commission.
Caraustar, a recycled packaging company, is one of the largest and lowest-cost
manufacturers and converters of recycled paperboard and recycled packaging
products in the United States. The company has developed its leadership position
in the industry through diversification and integration from raw materials to
finished products. Caraustar is the only major packaging company that serves the
four principal recycled paperboard product markets: tubes, cores and cans;
folding carton and custom packaging; gypsum wallboard facing paper; and
miscellaneous "other specialty" and converted products.
For additional information on the company please visit the Caraustar Web site at
http://www.caraustar.com
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