Resolute announces Q3 results

Resolute Forest Products recently announced its financial performance in the third quarter of 2014. The company’s net sales reached approximately USD 1.1 billion, a dip by USD 34 million compared to the same period last year.


The US based company has reported an operating loss of USD 40 million in the third quarter compared to operating income of USD 36 million a year ago.


"Our adjusted EBITDA improved sequentially thanks to the best lumber quarter in recent history and continued strength of market pulp," said Richard Garneau, President and CEO, Resolute Forest Products.


Overall pricing was higher as a result of a 13 percent increase in the average transaction price for wood products and 4 percent for market pulp, offset in part by 4percent lower average pricing for specialty papers and 3 percent for newsprint.


Shipments were 1 percent higher in both wood products and specialty papers, but they were 9 percent lower in market pulp, largely because of greater internal consumption of hardwood kraft pulp and market downtime in recycled bleach kraft pulp.  Shipments were also 5 percent lower in newsprint, which reflects lower export volumes compared to the same period last year.


Garneau added, "We're building momentum in the wood products business: the Thunder Bay pellet plant is starting its ramp-up, our Ignace sawmill is about to begin its own ramp-up, and we're on schedule with the construction of our Atikokan sawmill.  Year-to-date shipments of newsprint and specialty papers outperformed industry trends, demonstrating the strength of our position, but we took some newsprint downtime in the quarter to reduce finished goods inventory.  More broadly, we met our commitment to reduce finished goods inventory levels in a disciplined manner across all segments, especially pulp."