Clearwater Paper Corporation has said it delivered “a strong performance” in its Q2 results due to the continued strength in paperboard and improvements in tissue, which reported increased consumer demand for private branded products.
Net sales of $526m were up 30% compared to the second quarter of last year, with a net income of $15m compared to a net loss for the second quarter of 2021 of $52m.
The business said higher pricing in both business sectors helping offset inflation.
Arsen Kitch, Clearwater President and Chief Executive, said: “We continued our trend of strong performance in the second quarter due to solid operational execution and improved pricing in both businesses.
“Our paperboard business continued to experience strong demand and pricing, while our tissue volumes increased due to stronger consumer demand for private branded products.”
For the first six months of 2022, Clearwater Paper reported net sales of $1bn, a 22% increase compared to net sales of $832m for the first six months of 2021.
Net income for the first six months of 2022 was $31m compared to a net loss for the first six months of 2021 of $40m.
Impacting the second quarter and first half of 2021, the business incurred impairment and other closure costs associated with the closure of its Neenah, Wisconsin facility of $41.7m and completed planned major maintenance at its Lewiston, Idaho paperboard facility.
Net sales in the pulp and paperboard products segment were $296m for the second quarter of 2022, up 30% year-on-year.
Net sales in the segment were $562m for the first six months of 2022, up 26% compared to net sales of $447m in the first six months of 2021.
Net sales in the consumer products segment were $232m for the second quarter of 2022, up 29% compared to the second quarter 2021 net sales of $181m.
Net sales in the consumer products segment were $455m for the first six months of 2022, up 17% compared to net sales of $389m in the first six months of 2021.
Retail tissue volumes sold were 76,604 tonnes in the second quarter of 2022, an increase of 25%.
Retail tissue volumes sold were 152,030 tonnes in the first six months of 2022, an increase of 25%.
Retail tissue selling prices increased 8% to $2,984 per tonne in the second quarter of 2022, compared to $2,755 per tonne in the second quarter of 2021; the retail tissue selling prices increased 8% to 2,928 per tonne in the first six months of 2022, compared to $2,757 per tonne in the first six months of 2021.
Kitch added: “Inflation remains a key theme in both of our businesses and is expected to persist into the third quarter.
“We are continuing with our efforts to offset these cost pressures with operational improvements and pricing.
“In addition, our focus on cashflow generation has enabled us to achieve our leverage target and we expect to discuss our capital allocation priorities later in the year.”