Clearwater Paper recently announced financial results for the second quarter of 2017. The company’s net sales dipped 1.6% to USD 429.7 million.
The net earnings in Q2 2017 reduced to USD 8 million as compared to USD 20.9 million reported in Q2 2016. The decrease in net earnings is a result of a planned bi-annual major maintenance outage at the Arkansas mill and higher input costs for energy, pulp, chemicals, and packaging supplies, according to the company statement.
Owing to higher paperboard shipment volume, the net sales from the company’s Pulp and Paperboard segment increased 4.8% to USD 197.8 million in Q2 2017. The segment’s operating income reduced to USD 21.6 million as compared to USD 40.0 million reported in the same period of 2016.
The drop in operating income is primarily due to higher input costs for natural gas, electricity, chemicals, pulp and higher wages. In addition, the company also invested around USD 9 million on Arkansas mill maintenance.
By: Omkar Khalap
