Caraustar Industries buys back $2.5 million 9 7/8% notes

Be Jennifer Chiou

New York, July 27 - Caraustar Industries, Inc. said it repurchased $2.5 million of its 9 7/8% senior subordinated notes during the second quarter.

The Atlanta recycled paperboard manufacturer also announced that sales for the three months ended June 30 were $269.3 million compared to sales of $268.5 million for the same quarter in 2004.

Net income for the second quarter of 2005 was $0.1 million, down from the $1.7 million second quarter 2004 net income.

"Our quarterly performance was solid in spite of increased freight and energy costs," Michael J. Keough, president and chief executive officer, said in a news release.

"Year to date, Caraustar volume is up 3.1% in 2005 through June and the industry was down 1.3%."

The company said it has no borrowings outstanding under its $75 million revolving credit facility and $37.9 million of letters of credit outstanding.

In October 2004, the company said it bought back $20 million of its 9 7/8% notes.

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