CSAR » Topics » Michael Keoug h -Caraustar-President, CEO

This excerpt taken from the CSAR 8-K filed Nov 9, 2007.

Michael Keough —Caraustar—President, CEO

We know it firsthand because CRB when we had the Sprague mill and the Rittman mill was the toughest business inside the Caraustar portfolio. Independently as we made some of our decisions, we decided that we were going to keep Tama. And I would tell you that our Tama mill, and I think I highlighted it in my notes based on a couple of small capital projects, but also the market. Our profitability at the Tama mill has tripled. If not tripled, maybe it’s up 2.5 times. I think it shows you what can take place. The interesting thing is, the uncoated recycled box board side is two times the size as CRB. So we see it as an opportunity. The reality is, and I think it goes back to Bruce’s question in terms of what else might we be doing, or independently the industry might be doing, on the pricing side. You cannot have low mill operating rates where they are right now and have a reasonable chance of going to the street, raising prices and keeping your business. So the dynamics are out of whack. What I do know is that we are not really happy. We think we slugged it out to a very solid quarter based on a lot of heavy lifting, but it wasn’t easy. When we take a look at punky demand and high volatile fiber prices we’re, working hard to figure out how we can balance our supply and demand. And my guess is independently, the other guys in the business, they have had margin squeeze quarter-over-quarter. They are faced with the same dynamics, and my guess is, they cannot be too happy. And I think they too have looked at the CRB story. It’s in everyone’s rearview mirror, and maybe they’re trying to learn from it too.

 


Operator

(inaudible).

 


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