Buckeye's Foley Plant Back in Operation after Power Outage

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Buckeye Technologies, Memphis, Tenn., USA, reports that its specialty wood cellulose and fluff pulp mill in Perry, Fla. (the Foley Plant), has returned to full operation following a power failure and outage on June 17. Chairman and CEO John B. Crowe said that "we are pleased that both of the Foley Plant's production lines returned to full production and have been operating at capacity since Wednesday, June 23. We continue to work with our customers to minimize the impact on their operations. The Foley organization responded in an extraordinary manner to bring the plant safely back to full operating capacity."

The company confirmed that it continues to expect the financial impact of the outage, excluding the effect of any insurance proceeds, to be in the range of a $4 million - $5 million reduction in pretax operating income for the quarter ended June 30. It expects earnings to be in the range of 24 - 27 cents per share for the quarter.

Crowe added that Buckeye "is working proactively and cooperatively with our insurance carrier to understand and document the extent of the loss. The company does have property loss and business interruption insurance with a single $2 million deductible and believes this event is a covered loss."