Atlanta, GA, October 27, 2005--Georgia-Pacific posted weaker quarterly profit because of surging energy costs and lower prices for packaging and some paper and pulp products.
Net income totaled $145 million, or $0.55 a share, compared with $240 million, or $0.91, a year earlier. Before items, earnings were $0.76 a share. Analysts, were expecting earnings of $0.70 a share.
Sales totaled $4.71 billion, slightly lower than $4.74 billion a year earlier but still above analysts' consensus target of $4.66 billion.
Sales in consumer products sales were up 4% to $1.5 billion in North America, but declined 4% to $479 million overseas. Packaging sales fell 6% to $739 million, and pulp and paper sank 8% to $536 million. Sales of building products were nearly flat at $1.82 billion.
Georgia-Pacific said rising energy and raw materials costs expanded its quarterly operating expenses by $105 million. Transportation costs grew about $35 million, and Hurricane Katrina-related expenses were about $15 million, the company added.
