Why Buckeye Shares Plummeted

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of fiber maker Buckeye Technologies (NYSE: BKI  ) have plummeted by as much as 12% after the company had to temporarily shut down a plant.

So what: The company's Florida wood cellulose fibers facility saw a "significant failure of a steam drum" on a paper machine that caused damage to multiple drums and structural damage to the building. Fortunately, there were no personnel injuries and the plant was shut down after the incident yesterday, with an investigation now under way to determine the root cause.

Now what: Buckeye says it's too early to determine when the plant will return to normal operations, but will have more information later in the week and will subsequently provide updates on plans for resuming production. CEO John Crowe said that Buckeye "can and will repair the damage" and is grateful that no one was injured. In the meantime, the company is working with customers, suppliers, and employees to minimize the impact of the outage to the supply chain and operations.

Interested in more info on Buckeye Technologies? Add it to your watchlist by clicking here.

Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1915871, ~/Articles/ArticleHandler.aspx, 11/28/2014 2:09:44 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement