Increasing pulp and material costs hit Badger Paper Mills hard, resulting in a second quarter loss of $1, 668,000,…
Increasing pulp and material costs hit Badger Paper Mills hard, resulting in a second quarter loss of $1, 668,000, a significant increase from last year’s Q2 $557,000. "The company continues to see increasing costs," said Ronald Swanson, president and CEO. "While market conditions have improved, the company was not able to raise prices during the second quarter of 2004. Higher costs along with no improvement in pricing resulted in the loss for the quarter."
Late in the quarter, 20% of the company’s Peshtigo manufacturing operations labour force was laid off. However, these cutbacks resulted in higher training costs for the newly designed setup. Swanson anticipates a positive financial impact of the reconfiguration will be felt in the third quarter of this year. "We continue to focus on what we need to do to be profitable in the future," he confirmed.
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