G-P profits slide by 40 percent

ATLANTA – Georgia-Pacific Corp., the world’s top maker of paper towels and toilet paper, said Thursday its third-quarter profit fell 40 percent as rising costs and lower prices hurt its bottom line.

The Atlanta-based company’s net income dropped to $145 million, or 55 cents per share, from $240 million, or 91 cents per share, the year before. Earnings from continuing operations and excluding unusual items were $198 million, or 75 cents per share, in the latest period, Georgia-Pacific said.

The company’s adjusted profit beat the average estimate of 70 cents per share from analysts surveyed by Thomson Financial.

“It was a solid quarter,” said Chief Executive A.D. “Pete” Correll.

The company said this month it was cutting 1,100 jobs worldwide and 850 in North America, part of a broad restructuring effort that will save the company more than $75 million this year, Correll said.