Q3 Paper Outlook — Beaten to a Pulp

The impact of falling paper prices can manifest in some surprising ways. In its recent financial report for the second quarter, Menasha, WI-based Banta Corp. noted that: "Sales for the quarter were $333 million compared with last year's $339 million. Lower paper prices reduced this year's second quarter sales by approximately $10 million." Despite its lower sales, Banta actually reported a seven percent increase in net earnings for the quarter as compared to 2001.