RockTenn Estimates 2Q 2012 Earnings to Be Reduced on Production Downtime

March 16, 2012 (Press Release) - RockTenn announced today that it expects fiscal second quarter earnings of between $0.35 and $.40 per diluted share and adjusted earnings of between $0.85 and $.90 per diluted share. The primary factors reducing fiscal second quarter adjusted earnings per diluted share compared to the fiscal first quarter adjusted earnings per diluted share are the impact of approximately 149,000 additional tons of economic and maintenance downtime at its containerboard mills, including approximately 30,000 tons from the previously announced closure of the Matane mill, the acceleration to the fiscal second quarter from the fiscal third quarter of a scheduled maintenance outage at RockTennís Demopolis, Alabama bleached paperboard mill, and lower pricing for export containerboard.

To calculate estimated adjusted earnings per diluted share, RockTennís estimated earnings per diluted share exclude approximately $0.50 per diluted share of restructuring costs and loss on extinguishment of debt. The loss on extinguishment of debt relates primarily to the redemption of its $300 million 9.25% Senior Notes due March 2016 at a redemption price equal to 104.625% of the principal amount and associated unamortized costs ($0.17 per diluted share). Restructuring and other costs and operating losses and transition costs due to plant closures, net of related noncontrolling interest, consist primarily of facility closure charges primarily related to the February 2012 closure of the Companyís Matane, Quebec corrugated medium mill ($0.23 per diluted share) and other former Smurfit-Stone corrugated container plants, merger integration costs and operating losses and transition costs in connection with consolidating facilities ($0.15 per diluted share). These costs are partially offset by the gain on sale of a previously closed corrugated container plant ($0.05 per diluted share).

RockTenn Chairman and Chief Executive Officer James A. Rubright stated, ďWe continue to expect significant earnings improvement beginning in the fourth fiscal quarter of 2012 and the first and second quarters of fiscal 2013 when we complete our major projects at the Hodge and Hopewell mills and begin to realize the benefit of the $480 million in capital expenditures we are making this year to reduce operating costs and improve the performance of our operations.Ē

RockTennís fiscal second quarter is not yet complete and as a result the financial estimates provided in this press release are subject to change based on actual results through the end of the second fiscal quarter, the closing of RockTennís books and determination of actual financial results.

RockTenn (NYSE: RKT) is one of North America's leading integrated manufacturers of corrugated and consumer packaging and recycling solutions, with net sales of $10 billion. RockTennís 26,000 employees are committed to exceeding their customersí expectations — every time. The Company operates locations in the United States, Canada, Mexico, Chile, Argentina and China. For more information, visit www.rocktenn.com.

SOURCE: RockTenn