Buckeye Technologies has said that it expects its profitability for the April-June quarter will be slightly above the level achieved in January-March 2006.

Revenue growth in the mid-single digits compared to both the preceding quarter and the year ago quarter is anticipated.

The company recorded revenues of $181.4 million, operating profit of $9.76 million, and a net loss of $0.8 after restructuring costs in the January-March 2006 quarter.

Buckeye’s new initiatives in the building products industry – UltraFiber 500 – and its recently upgraded specialty cellulose facility at Americana, Brazil contributed to revenue growth in the April-June quarter. Additionally, net debt was reduced by $30.9 million to $510.9 million.

Buckeye’s chairman John B. Crowe commented: “While we are pleased that we are building sales for both UltraFiber 500 and at our Americana facility, we are disappointed that the ramp-up at Americana did not meet our expectations for the quarter. Additionally, high manufacturing costs at our wood facility in Florida had a negative impact on earnings.

As we begin our fiscal year 2007, our priorities are to turn the higher revenues from new initiatives into improved earnings and to reduce costs across the company.”

The company will report its fiscal year 2006 and April-June results on August 8, 2006.