Converting

Temple-Inland, the US-based corrugated packaging specialist, has reported that profit in its box business fell by 29% to $50m (£32.1m) in the third quarter of the year.

The company blamed the fall in income on lower box shipments, higher freight, energy and chemical costs and disruption and costs associated with Hurricanes Gustav and Ike.

The hurricanes cost the company $13m in the third quarter, causing 38,000 tonnes of downtime, it said.

The company recorded sales of $797m in the third quarter, compared with $748m in the same period of 2007.

Doyle R. Simons, chairman and chief executive, said: "We successfully implemented a box price increase during the period and will realise a full quarter's benefit of the increase in the fourth quarter.

"We continue to make progress on our strategic initiative of lowering costs at our converting facilities through improved asset utilisation."

The company acquired the remaining 50% interest in Premier Boxboard from US-based paperboard specialist Caraustar Industries in the third quarter of the year.

Temple-Inland, which has 64 converting sites in the US, Mexico and Puerto Rico, also operates a building products business.