Clearwater Paper has said it expects continued strength in its tissue business in the coming quarters as it reports stronger than expected results.
In the second quarter, the company reported net sales of $525m, down from the $526m reported in the second quarter of 2022.
Net income was $30m compared to $15m reported in the second quarter of 2022, and adjusted EBITDA was $71m compared to the second quarter of $63m.
For the first six months of 2023, net sales were $1.1bn, a 3% increase compared to net sales of $1.0bn for the first six months of 2022.
Net income for the first six months was $54m compared to net income for the first six months of 2022 of $31m.
Arsen Kitch, President and Chief Executive, said: “We had a stronger than expected second quarter, with solid operational performance and lower than expected costs for key inputs such as pulp, energy, and transportation.
“Tissue demand remained strong, while paperboard was soft as consumer spending slowed and customers continued to manage inventories.
“We continued to focus on cash flow generation and were able to reduce our net debt by $25m.”
In the company’s retail tissue division, volumes sold were 78,672 tons in the second quarter of 2023 compared to 76,604 tons a year earlier.
For the first six months of the year, retail tissue volumes sold were 155,520 tons, an increase of 2% compared to 152,030 tons year-on-year.
Kitch added: “We expect continued strength in our tissue business in the coming quarters, with projected strong demand and lower input costs driving improved margins.
“We also anticipate that our paperboard volumes will improve in the second half of this year as compared to the first half.
“We will continue our focus on cash flow generation through strong operating performance and managing inventories by matching supply with demand.”
