Paper Profits Down

Although the paper industry enjoyed positive momentum in the 4Q2006, the recent cost increases and lower demand have offset gains from recent price increases. RISI, a paper association researcher, recently reported that most paper producers were successful in raising prices; however, costs also increased for such components as fiber, chemicals, energy, transportation and labor. The survey revealed 19 companies reported positive quarterly earnings; five companies reported lower income, and, eight companies reported a net loss.