Clearwater Paper Corporation has said it delivered a “strong performance” in its third quarter results due to the elevated demand for tissue products following the outbreak of Covid-19.
For the third quarter of 2020, the company reported net sales of $457m, a 3% increase compared to $445m in the same period a year earlier.
Net income for the third quarter of 2020 was $21m compared to net loss for the third quarter of 2019 of $11m.
For the first nine months of 2020, net sales were $1.4bn, a 7% increase compared to net sales of $1.3bn year-on-year.
Net income for the period was $55m, compared to net loss for the first nine months of 2019 of $8m.
Arsen Kitch, President and Chief Executive, said: “In the third quarter, we achieved strong results due to continued elevated demand and production in tissue, although at lower levels than the earlier phases of the COVID-19 pandemic, stable paperboard performance and benign input costs.
“We remain committed to the health and safety of our employees and continuing to safely operate our facilities to meet the needs of our customers.”
For Consumer Products, net sales were $248m for the third quarter of 2020, up 9% compared to the third quarter 2019 net sales of $229m.
In the third quarter of 2020, converted case shipments reached 14.5m cases – a 10% increase compared with the same period a year earlier.
Segment operating income for the third quarter of 2020 was $31m compared to an operating loss of $4m in the third quarter of 2019, mainly due increased production and shipment volumes.
The segment also realised benefits from lower external pulp prices.
Net sales in the Consumer Products segment were $789m for the first nine months of 2020, up 17% compared to the first nine months 2019 net sales of $676m.
Total tissue volumes sold were 90,091 tonnes in the third quarter of 2020, an increase of 4% compared to 86,408 tonnes in the third quarter of 2019.
Retail volumes represented 96% of total volumes sold in the third quarter of 2020, an increase from 92% in the third quarter of 2019.
Total tissue volumes sold were 291,128 tonnes in the first nine months of 2020, an increase of 15% compared to 252,828 tonnes in the first nine months of 2019.
Retail volumes represented 94% of total volumes sold in the first nine months of 2020, an increase from 91% in the first nine months of 2019.
Kitch added: “For the fourth quarter, our primary focus will remain on our top priorities – the health and safety of our employees – while we continue to operate our facilities and service customers.
“Demand for tissue products is expected to soften relative to the third quarter of 2020 as retail in-stock conditions and inventories have improved.
“We are also closely monitoring economic conditions and assessing the impact on our business for the balance of the year.”
