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Resolute Forest Products reports 2Q net loss of $74 million

Photo: Resolute Forest Products
Photo: Resolute Forest Products
Published by
Simon Matthis - 04 Aug 2017

Resolute Forest Products Inc. reported a net loss for the quarter ended June 30, 2017, of $74 million, compared to a net loss of $42 million in the same period in 2016. Sales were $858 million in the 2Q, down $33 million, or 4%, from the 2Q 2016.

"This quarter's performance was a clear improvement from the 1Q," said Richard Garneau, president and CEO. "The results of our wood products segment were strong given higher prices associated with the U.S. imposition of trade barriers, while our market pulp segment recorded a solid performance despite production curtailments associated with annual outages. In tissue, the improvement in our profitability continued but remained short of expectations. Paper segments continued to be impacted by adverse market conditions, particularly in specialty grades."


The company recorded an operating loss of $47 million in the quarter, compared to an operating loss of $6 million in the 1Q 2017, while adjusted EBITDA increased by $22 million over the same period, to $83 million.


The company's operating results were positively impacted by overall increases in pricing, particularly in our wood products and market pulp segments. Those improvements were partially offset by lower volumes in our market pulp and paper segments, as well as higher maintenance expenses related to annual outages at a number of our facilities.


Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products, newsprint and specialty papers.