Rock-Tenn Rises After Lifting Cash Flow Forecast: Atlanta MoverChristopher Donville
Rock-Tenn Co., a U.S. maker of corrugated packaging, rose the most in nine months after increasing its forecast for free cash flow.
Rock-Tenn rose 7.9 percent to $105.51 at 12:09 p.m. in New York, the biggest intraday gain since April 24. Norcross, Georgia-based Rock-Tenn has risen 33 percent in the past year.
Free cash flow in the fiscal year ending in September will be $13 to $14 a share, up from a previous forecast of $12.50 to $13.50, Steven Voorhees, Rock-Tenn’s chief executive officer, said today on a conference call.
The increase underlies confidence “in our ability to provide shareholders with strong current cash-flow returns and the ability to improve those returns,” Voorhees said. The company may use the funds to pursue share buybacks or to increase its dividend.
The company yesterday reported profit of $1.66 a share in its fiscal first quarter that ended Dec. 31, trailing the $1.73 average of 11 analysts’ estimates compiled by Bloomberg, according to a statement.