Resolute reports net loss in preliminary 2Q results

Resolute Forest Products has reported a net loss of $74m for the quarter ended 30 June 2017, compared with a net loss of $42m in the same period in 2016.

Sales were $858m in the quarter, down 4% from the second quarter of 2016.

In tissue, the company said its improvement in its profitability continued but “remained short of expectations”.

Its tissue segment included only the Atlas Tissue operations in the second quarter and reported “a marginal improvement” in its operating loss compared to the first quarter.

The overall transaction price rose by $4 per short tonne as gains in converted products were partially offset by declining pricing for parent rolls.

It added that the average transaction price for tissue fell by 11%.

Delivered costs also rose when compared to the year-ago period because of rising energy and fibre expenses, as well as less favourable distribution costs.

Resolute has invested $47m in fixed assets during the quarter, $33m of which was spent on the Calhoun tissue project.

Richard Garneau, president and chief executive officer, said: “This quarter’s performance was a clear improvement from the first quarter.

“As our results continue to improve, we remain focused on our short-term priorities of increasing sales in our tissue segment, battling unfair US countervailing and anti-dumping duties, and managing our indebtedness and liquidity to be in a position to continue our long-term transformation.

“In pulp, we are cautiously optimistic that market conditions will remain relatively favourable at least through the third quarter.

In tissue, I am confident that our progress will accelerate in the short-term with the addition of Patrice Minguez as president of the company’s tissue group.”

The company expects to include the results of its Calhoun tissue operations in its fourth quarter 2017 results.

Elsewhere, the company has also appointed Patrice Minguez as President of Tissue Group

 

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