Clearwater Paper's 3Q net sales down 2% to $426.5 million

Photo: Clearwater Paper

Clearwater Paper Corporation reported net sales of $426.5 million for the 3Q 2017, down 2% compared to net sales of $435.3 million for the 3Q 2016. Net earnings determined in accordance with generally accepted accounting principles, or GAAP, for the 3Q 2017 were $0.9 million, comparable to net earnings for the 3Q 2016 of $0.9 million, as a $2.4 million tax benefit from Federal tax credits in the 3Q 2017 more than offset a pre-tax loss of $2.2 million for the quarter.

Earnings before interest, taxes, depreciation and amortization, or EBITDA, were $31.3 million for the 3Q 2017 compared to $32 million for the 3Q 2016.

Adjusted EBITDA for the quarter was $37.6 million, up 9.7% compared to 3Q 2016 Adjusted EBITDA of $34.3 million. The $3.3 million increase in Adjusted EBITDA in the 3Q 2017 was primarily a result of lower general maintenance costs as well as lower wage and benefits expense resulting from warehouse automation projects at several of the company's facilities, the shutdown of two higher cost tissue machines at the company's Neenah, Wisconsin mill and the closure of the company's Oklahoma City facility. These were partially offset by higher input costs for pulp and transportation.

"During the quarter, we continued to focus on our long-term strategic plan to improve operating efficiencies and reduce expenses, resulting in the completion of two major strategic initiatives as part of a three-year strategic plan," said Linda K. Massman, president and CEO.

Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, parent roll tissue, bleached paperboard and pulp.