Resolute Forest Products Declares Preliminary Q2 2019 Results
Rubber and Wood | 2019-09-05 22:30:09
The company reported net income of $25 million or $0.27 per diluted share in Q2, as compared with $72 million or $0.77 per diluted share in the same quarter in 2018.
By Paul Ploumis
SEATTLE (Scrap Monster): Resolute Forest Products Inc. reported preliminary results for second quarter 2019. The results were hugely impacted by lower pricing across various business segments.
The company reported net income of $25 million or $0.27 per diluted share in Q2, as compared with $72 million or $0.77 per diluted share in the same quarter in 2018. The sales registered a decline by $221 million to total $755 million.
The operating income in the market pulp segment dropped from $42 million in the prior quarter to $27 million in second quarter, mainly attributed to drop in sales. The tissue segment reported an operating loss of $4 million during the quarter. The operating loss of wood products segment stood at $3 million. This compares with an operating income of $6 million in first quarter. The operating income from Newsprint segment declined sharply from $28 million to $17 million over the previous quarter. The specialty papers segment income held steady at around $15 million.
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Yves Laflamme, president and chief executive officer, Resolute Forest Products noted that the company’s tissue segment generated positive EBITDA, due to higher pricing and improved productivity. Also, the pulp and paper business generated strong margins despite pricing challenges.
Resolute expects pricing for market pulp to remain under pressure in the near term. It continues to remain positive on pulp and tissue business. Meaning pricing headwinds may continue to affect paper business margins.
