Clearwater Paper has said demand for tissue products is expected to remain “at elevated levels”, as it reports its second quarter results.
In the second quarter, the company reported a net income of $23m and Adjusted EBITDA of $79m.
Overall, for the second quarter of 2020 net sales were $480m, with a 6% increase compared to net sales of $452m for the second quarter of 2019.
Net income for the second quarter of 2020 was $23m, compared to net loss for the second quarter of 2019 of $0.4m.
For the first six months of 2020, net sales were $958m, a 9% increase compared to $881m recorded for the first six months of 2019.
Arsen Kitch, president and chief executive, said: “We continue to remain focused on two priorities – the health and safety of our employees and continuing to safely operate our facilities to meet the needs of our customers.
“In the second quarter, we achieved a quarterly record Adjusted EBITDA due to elevated demand and production in tissue, stable paperboard performance and lower input costs, which resulted in strong free cash flow used to reduce our net debt.”
Net sales in the Consumer Products segment were $275m for the second quarter of 2020, up 23% compared to the second quarter 2019 net sales of $224m.
Net sales in the Consumer Products segment were $541m for the first six months of 2020, up 21% compared to the first six months 2019 net sales of $448m.
Total tissue volumes sold were 101,244 tonnes in the second quarter of 2020, an increase of 22% compared to 82,798 tonnes in the second quarter of 2019.
Retail volumes represented 94% of total volumes sold in the second quarter of 2020, an increase from 92% in the second quarter of 2019.
Total tissue volumes sold were 201,037 tonnes in the first six months of 2020, an increase of 21% compared to 166,420 tonnes in the first six months of 2019.
Kitch added: “For the upcoming quarter, our primary focus will remain the health and safety of our employees while we continue to operate our facilities and service customers.
“Demand for tissue products is expected to remain at elevated levels due to Covid-19 but slowly normalise as retail in-stock conditions and inventories continue to improve.
“We are also closely monitoring economic conditions and assessing the impact on our business for the balance of the year.”
