Clearwater Paper has said it delivered “exceptional results” in its fourth quarter and 2020 financial and operating results, despite the challenges of Covid-19.
In the fourth quarter, net sales of $453m where up 4% compared to the same period a year ago, while net income was $23m compared to $2m in the fourth quarter of 2019.
Adjusted EBITDA was $72m compared to $52m.
The company said it delivered a strong performance due to “continued elevated demand for tissue products and solid operational execution”.
For the full year, net sales were $1.9bn, up 6.1% compared to 2019.
Adjusted EBITDA for 2020 was $283m compared to $167m in 2019.
Arsen Kitch, president and chief executive, said: “Our people delivered exceptional results while persevering through significant professional and personal challenges in 2020, and I could not be prouder of the team.
“We delivered an outstanding year by focusing on our people and our customers.
“Our tissue business navigated through significant demand volatility, built better customer relationships, and ramped the new Shelby paper machine.”
In the Consumer Products Segment, net sales were $244m for the fourth quarter of 2020, up 5.6% year-on-year.
Adjusted EBITDA was $44m, up from $20m in the fourth quarter of 2019.
The increase was mainly due to increased production and shipment volumes from elevated demand as well as lower external pulp prices and freight costs.
For the full year, net sales in the Consumer Products segment were $1.0bn, up 14% compared to 2019 net sales of $907m.
Total tissue volumes sold were 89,845 tonnes in the fourth quarter of 2020, an increase of 2% year-on-year.
Retail volumes represented 93% of total volumes sold in the fourth quarter of 2020, an increase from 90% in the fourth quarter of 2019.
Total tissue volumes sold were 380,973 tonnes for the year ended of 2020, an increase of 12% compared to 340,969 tonnes for 2019.
Average retail tissue net selling prices increased 2% to $2,745 per tonne in the fourth quarter of 2020, compared to $2,698 per tonne in the fourth quarter of 2019.
Kitch added: “For the first quarter of 2021, our primary focus will remain on the health and safety of our people while we continue to operate our facilities and service customers.
“Demand for tissue products is expected to be volatile due to Covid-19 and will be lower than the first quarter of 2020 when Covid-19 started impacting consumer buying of tissue.
“We are anticipating some inflationary headwinds, notably in market pulp pricing, as well.”
