Finch Paper LLC – Q2 Review 2011
Joseph F. Raccuia, President and Chief Executive
Finch Paper LLC (“Finch” or the “Company”) is a leading producer of premium uncoated printing papers. Finch is an integrated mill utilizing on-site sustainable energy sources, including biomass and hydroelectric power. Finch also manages more than 160,000 acres of Adirondack forests for The Nature Conservancy.
With the ongoing focus of all Finch employees, the Company has seen strong improvements in safety metrics during Q2 2011. It continues to engage in procedures to achieve its five-year plan for world-class safety performance.
Finch volume remained strong despite the continued weakness in the uncoated free sheet market. However, the soft market environment and escalating raw material costs placed pressure on margins throughout the quarter. This pressure was exacerbated by a short-term increase in fixed costs necessary to support key initiatives at Finch: our manufacturing information system migration and our transition to high-performance work systems. We have confidence that these expenditures are positioning Finch for increased profitability in future quarters.
In addition to process standardization (high-performance work systems) and continuous improvement efforts, Finch has implemented a companywide cost reduction program. We anticipate significant reductions to Finch’s fixed and variable costs during the remainder of 2011. Finch also will continue to focus on safety improvements, increased productivity and strategic sourcing initiatives during the second half of 2011.
