Mill Closures Weigh Heavily on Boise Cascade

BOISE, ID-A one-time charge for the closure of two mills in Idaho and the cancellation of a forestry project in Chile turned an already poor first quarter performance by Boise Cascade Corp. into a abysmal one.

Without the $69.8 million one-time charge, the forest products company is reporting a first quarter net income of $7.1 million, or 7 cents a diluted share, an 80% slump compared with $39.6 million, or 60 cents a diluted share, in the first quarter of last year. Including the one-time charge, however, the company actually lost $35.5 million, or 68 cents a diluted share.

Boise Cascade makes and distributes office products and building materials, paper and wood products. Wall Street analysts had lowered the earnings estimates for many wood and paper companies recently as a result of the slowing U.S. economy and lower demand and prices.