RFP Market Pulp Segment Posted $3 Million Loss

SEATTLE (Scrap Monster):  Resolute Forest Products Inc. (RFP) reported net loss of $1 million or $0.01 per share in the initial three-month period of 2020, impacted by Covid-19 effects. This compares with net income of $42 million in the corresponding three-month period in 2019. Sales were down to $689 million. The company reported adjusted EBITDA of $32 million during the quarter ended March 31, 2020.

The market pulp segment reported operating loss of $3 million, whereas the tissue segment reported operating income of $2 million. The operating income from wood products segment was $5 million. A loss of $3 million was incurred by the newsprint segment. The operating income from specialty papers segment improved to $3 million. The impacts of lower selling prices in the pulp and paper segments were offset by reduced manufacturing costs, the company press release said.

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Commenting on the results, Yves Laflamme, president and chief executive officer stated that the quarterly results reflect the resurgence in lumber market prices and lower maintenance costs. However, the results were negatively impacted by lower newsprint prices. The company is well-positioned financially and operationally to face the ongoing challenging situation. The capital spending will be reduced by 30%, he added.