Resolute's Second Quarter Results Spiked on Booming Lumber Prices

SEATTLE (Scrap Monster): Resolute Forest Products Inc. (RFP) reported preliminary second quarter 2021 results. The company’s wood products segment results were driven by strong lumber prices.

According to company press release, it reported net income of $268 million, or $3.34 per diluted share, for the quarter ended June 30^th, 2021. This compares with net income of $6 million, or $0.07 per diluted share, during the corresponding period in 2020. The sales during the quarter totalled $1,140 million, significantly higher by $528 million from the prior year period. Excluding special items, the company reported net income of $300 million or $3.74 per diluted share.

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The wood products segment generated operating income of $405 million, supported by strong lumber prices. The segment EBITDA rose by $183 million to $415 million. The shipments totalled 575 million board feet. The market pulp segment operating income surged higher by $26 million to $30 million during the quarter.

The tissue segment reported operating loss further widened to $7 million in Q2 2021. A similar operating loss was reported by RPF’s paper segment too.

The company generated $401 million in cash from operating activities during the second quarter. It repaid $180 million of debt and undertook $33 million in capital investments. The liquidity as at the end of the quarter stood at $1.1 billion.