Wausau Paper has made “significant progress on repositioning itself to focus on tissue” as it reports a net loss of $1.7m in its first quarter results.
The results reflect the impact of the start-up of the $220m tissue expansion project in Harrodsburg, Kentucky, and the conversion of its new machine from conventional to ATMOS production.
The conversion was completed in February and the qualification process for a new portfolio of 100% recycled products has started.
During the quarter, the company announced its repositioning of the business to focus on tissue, as well as qualified a family of new products on ATMOS substrates to support the second-quarter launch of the DubINature brand.
Chief executive and president Henry Newell said: “The recent investment in the tissue business positions us for growth with a long term return on capital goal of 18% and achievement of 15% return on capital by the end of 2014.
“We remain committed to delivering 6% case shipment growth in our tissue business by the fourth quarter of 2013.”
First-quarter volume was “relatively flat” compared to the prior year, while volume in the support product categories was strong increasing 3%.