Resolute Forest Products Inc. reported a net loss for the 4Q ended December 31, 2020, of $52 million, or $0.63 per share, compared to a net loss of $71 million, or $0.79 per share, in the same period in 2019.
Sales were $769 million in the 4Q 2020, an increase of $101 million from the year-ago period. Excluding special items, the company reported net income of $45 million, or $0.55 per diluted share, compared to a net loss of $53 million, or $0.59 per share, in the 4Q 2019.
The company reported operating income of $4 million in the 4Q 2020, compared to an operating loss of $69 million in the comparable quarter of 2019. Adjusted EBITDA was $129 million, $125 million higher than the 4Q 2019.
For the year, the company reported GAAP net income of $10 million, or $0.12 per diluted share, compared to a net loss of $47 million, or $0.51 per share, in 2019. Sales were $2.8 billion, down by 4% from the previous year. Excluding special items, the company reported net income of $56 million, or $0.65 per diluted share, compared to a net loss of $46 million, or $0.50 per share, in 2019.
"We're pleased with the performance of our wood products segment and its ability to drive bottom-line impact from strong end-markets like what we've seen in the second half of 2020 with the rebound in U.S. housing starts and robust demand for repair and remodeling activity," said Yves Laflamme, president and CEO. "The strong pricing for lumber and a release of working capital allowed us to generate almost $160 million of cash from operations in the quarter and helped to make up for challenging conditions in our pulp and paper segments, which are still recovering from the economic effects of the pandemic. Last quarter we took advantage of our strong financial performance to repurchase an additional 2.1 million shares of our common stock, for a total of 8% this year, and we recently refinanced our $375 million of outstanding 5.875% notes due 2023 with $300 million in new 4.875% notes due 2026 on very favorable terms and conditions."
Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products and papers.
Source: Lesprom Network
