Atlanta, GA, February 1--Georgia-Pacific reported its fourth-quarter net profit fell by almost half, after it increased funds to cover asbestos lawsuits.
Net income fell to $16 million, or 6 cents a share, from $31 million, or 12 cents a share, a year earlier.
Excluding $118 million in unusual items, earnings were 51 cents a share. On that basis, analysts expected the company to earn 47 cents a share, according to Reuters Estimates.
Sales rose 3 percent to $4.5 billion. The company's largest division, building products manufacturing, posted sales of $1.55 billion and North America consumer products posted sales of $1.45 billion.
Georgia-Pacific said it recorded a pre-tax asbestos related charge of $159 million in the quarter, or 38 cents a share after-tax.
Two weeks ago the company warned it could post a net loss for the quarter due to a series of charges, including asbestos liabilities.
It had warned results at its packaging business could miss expectations due to a drop-off in seasonal demand and maintenance downtime at its plants.
The packaging segment posted sales of $770 million compared to $713 million, but the company said volumes were down, mainly because there was a week less in the quarter.
