Resolute Reports Preliminary Third Quarter 2016 Results

Market Pulp

Operating income in the market pulp segment was $5 million in the third quarter, $7 million lower than the second quarter. The overall average transaction price rose by $3 per metric ton, with gains in softwood more than offsetting declines in hardwood and fluff grades. The operating cost per unit (the "delivered cost") rose by $17 per metric ton, to $592 per metric ton, owing mostly to lower productivity, higher chemical costs related to lime kiln failures at Saint-Félicien (Quebec) and Catawba (South Carolina) and rising recovered fiber costs. Lower shipments, which fell by 22,000 metric tons over the quarter, also had a significant impact on results and originated mostly from operating difficulties and an annual outage at Thunder Bay (Ontario) combined with maintenance challenges at Saint-Félicien during the quarter. The output at Calhoun (Tennessee) fell short of expectations, as peripheral equipment performance had to be corrected.

Tissue

The tissue segment incurred an operating loss of $5 million for the quarter, $1 million more than the previous quarter. Although volumes sold to retail customers increased by 4%, an unfavorable change in customer mix for converted product sales combined with lower pricing for parent rolls translated into an overall reduction in pricing of $11 per short ton. The delivered cost increased by $86 per short ton compared to the second quarter, as we continue to deploy optimization measures. EBITDA was negative $3 million in the period, $1 million worse than the second quarter of 2016.

Wood Products

The wood products segment generated operating income of $36 million in the quarter, a $16 million improvement against the previous quarter. Shipments increased by 14%, to 506 million board feet, supported by reduced market downtime, a reduction of rough lumber inventories and higher productivity. The average transaction price rose by $6 per thousand board feet, or 2%, reaching $331 per thousand board feet. The delivered cost in the segment was 5% lower at $263 per thousand board feet, mostly as a result of increased volume and lower costs. EBITDA for the segment achieved a record at $43 million, or $85 per thousand board feet, compared to $65 in the second quarter. Finished goods inventory declined by 6%.

In October, the company also entered into an agreement to acquire the assets of another sawmill in Senneterre (Quebec) for approximately C$8.5 million including working capital. This acquisition will generate synergies, and increase annual production capacity by approximately 100 million board feet.

Newsprint

The newsprint segment incurred an operating loss of $8 million in the quarter, compared to an operating loss of $3 million in the second quarter. Pricing for the segment continued its steady increase, rising by $11 per metric ton when compared to the previous quarter, to $515 per metric ton. The delivered cost, on the other hand, was unfavorably impacted by lower contribution from cogeneration facilities, as well as higher energy and recovered fiber costs and therefore increased by $20 per metric ton, to $531 per metric ton. Shipments declined by 40,000 metric tons, or 8% as we shut down capacity at Augusta (Georgia) and took market downtime at Thorold (Ontario) and Mokpo (South Korea) to balance declining demand in overseas markets. EBITDA was $9 million for the quarter, equivalent to $19 per metric ton, compared to $16 million in the previous quarter. Finished goods inventory rose by 9,000 metric tons to 105,000 metric tons, an increase of 9%.

Specialty Papers

The specialty papers segment recorded an operating loss of $2 million in the third quarter, a decline of $18 million from the $16 million of operating income recorded in the second quarter. The average transaction price was higher by $4 per short ton, as our grade mix shifted to higher value products. However, revenue gains were more than offset by an increase in delivered costs per short ton of $52. Increases in costs were mostly the result of lower production volumes, higher power and maintenance costs and lower hydro and cogeneration contribution owing mostly to a damaged water wheel requiring replacement in one of our hydro operations. Shipments were seasonally higher by 2,000 short tons during the quarter. EBITDA for the segment fell by $17 million, reaching $9 million, equivalent to $23 per short ton, $45 per short ton lower than the second quarter. Finished goods inventory declined by 15%, reaching 75,000 short tons.

Consolidated Quarterly Operating Income Variance Against Year-Ago Period

The company recorded operating income of $10 million for the third quarter, including an operating loss of $5 million for tissue, compared to operating income of $6 million in the year-ago period. Reductions in cost of sales, depreciation and amortization, and distribution expenses totaled $48 million, more than offsetting a decline in sales of $40 million, excluding tissue.

The average transaction price for market pulp and specialty papers fell by 5% and 3% respectively, while wood products rose by 5% and newsprint increased by 3%, resulting in an overall favorable variance of $1 million on pricing, excluding foreign exchange, when compared to last year.

Shipments decreased by 10% in market pulp, mostly as a result of the timing of the annual outage and operating issues at Thunder Bay. Volumes also declined in newsprint and specialty papers, by 9% and 7%, respectively, reflecting structural market declines across printing paper. On the other hand, shipments of wood products rose by 20%, owing to higher productivity and a reduction of rough lumber inventories, as well as improving demand in the U.S. housing market. Inventories have increased in market pulp (30%) and newsprint (4%), while declining in specialty papers (26%) and wood products (10%).

Lower delivered cost for wood products (down 11%) and a reduction of $7 million in non-operating pension and other postretirement benefit ("OPEB") expense resulting from the lower net balance sheet pension liability as of December 31, 2015 more than offset delivered cost increases of 3% for pulp, 3% for newsprint, and 1% for specialty papers. The delivered cost in the year-ago period included a one-time favorable impact of $13 million due to a property tax adjustment and the recognition of tax credits in connection with infrastructure investments.

Corporate and Finance

In early September, the company entered into a new senior secured credit agreement with an aggregate lender commitment of up to $185 million. The agreement is comprised of a $46 million nine-year term loan and a $139 million six-year revolving credit facility. The main purpose of these facilities is to complete funding requirements for the Calhoun (Tennessee) tissue project. They also represent an excellent opportunity to secure additional liquidity at competitive rates and will further enhance flexibility in the execution of the Company's growth and diversification strategy.

During the quarter, total debt increased by $116 million, mostly to support capital expenditures at Calhoun, which reached $50 million in the period. Previously disclosed annual supplemental and capacity reduction pension contributions totaling $29 million were also made during the quarter.

Cash and cash equivalents rose to $55 million, while liquidity was $520 million at the end of the quarter.

Outlook

Mr. Garneau added: "In the short-term, we will prioritize the execution of our tissue strategy, with the converting lines at Calhoun to be fully commissioned by year-end and the startup of the tissue machine by the end of the first quarter. We will also maintain a continued focus on the Atlas operations in order to deliver the value we expect over the coming quarters. As pulp and paper markets remain challenging and downward pricing pressure intensifies in the short-term, especially for pulp, we will continue to focus on reliability to ensure our competitiveness is maximized, particularly in specialty papers and market pulp. For wood products, we believe a petition will be filed shortly by the coalition of U.S. lumber producers, including producers who are timberland owners. Our forestry systems in Quebec and Ontario are market-based and we fully support the Quebec Government in demanding free trade for exports of softwood lumber from Quebec to the United States."

Earnings Conference Call

The company will hold a conference call to discuss the financial results at 9:00 a.m. (ET) today. The public is invited to join the call at (877) 648-7976 at least fifteen minutes before its scheduled start time. A simultaneous webcast will also be available using the link provided under "Presentations and Webcasts" in the "Investors" section of www.resolutefp.com. A replay of the webcast will be archived on the company's website; a phone replay will also be available until November 17 by dialing (855) 859-2056, conference number 4932665.

Description of Special Items

Cautionary Statements Regarding Forward-Looking Information

Statements in this press release and the earnings conference call and webcast referred to above that are not reported financial results or other historical information of Resolute Forest Products Inc. are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. They include, for example, statements relating to our: efforts and initiatives to reduce costs and increase revenues and profitability; business and operating outlook; future financial results, including EBITDA; assessment of market conditions; growth and diversification strategies and prospects, and the growth potential of the company and the industry in which it operates; liquidity; and strategies for achieving our goals generally. Forward-looking statements may be identified by the use of forward-looking terminology such as the words "should," "would," "could," "will," "may," "expect," "believe," "anticipate," "attempt," "project" and other terms with similar meaning indicating possible future events or potential impact on our business or our shareholders.

The reader is cautioned not to place undue reliance on these forward-looking statements, which are not guarantees of future performance. These statements are based on management's current assumptions, beliefs and expectations, all of which involve a number of business risks and uncertainties that could cause actual results to differ materially. The potential risks and uncertainties that could cause the company's actual future financial condition, results of operations and performance to differ materially from those expressed or implied in this press release and the conference call and webcast referred to above include, but are not limited to, the impact of: developments in alternative media, which are expected to continue to adversely affect the demand for some of our key products, and the effectiveness of our responses to these developments; any additional closure costs and long-lived asset or goodwill impairment or accelerated depreciation charges; currency fluctuations; global economic conditions; intense competition in the forest products industry; negative publicity, even if unjustified; the highly cyclical nature of the forest products industry; contributions to our Canadian pension plans at levels higher than expected; the terms of our outstanding indebtedness, which could restrict our current and future operations; our ability to maintain adequate capital resources to provide for all of our substantial capital requirements; any inability to successfully implement our strategies to increase our earnings power; the possible failure to successfully integrate our businesses and the businesses of Atlas Paper or that such integration may be more difficult, time-consuming or costly than expected or that expected benefits from the acquisition may not be fully realized or realized within the expected time frame; future acquisitions, divestitures or other strategic transactions or projects we may pursue; any failure to comply with environmental or other laws or regulations, even if inadvertent; legal proceedings or disputes; future regulation of our Canadian softwood lumber exports to the United States; countervailing duties, cash deposit requirements or other trade remedies, which could require us to set aside or pay a substantial amount of cash and impact the competitive position of the affected operations; any difficulties in obtaining wood fiber at favorable prices, or at all; changes in the cost of purchased energy and other raw materials; any labor disputes; changes in political or economic conditions in Canada, the United States or other countries in which our products are manufactured or sold; physical and financial risks associated with climate change; any additional environmental or health and safety liabilities; disruptions to our supply chain, operations or the delivery of our products; losses that are not covered by insurance; the actions of holders of a significant percentage of our common stock; extreme weather conditions or natural or man-made disasters; cyber security risks; and the potential risks and uncertainties described under the heading "Risk Factors" in Part I, Item 1A of the company's annual report on Form 10-K for the year ended December 31, 2015.

All forward-looking statements in this press release and in the conference call and webcast referred to above are expressly qualified by the cautionary statements contained or referred to above and in the company's other filings with the U.S. Securities and Exchange Commission and the Canadian securities regulatory authorities. The company disclaims any obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

About Resolute Forest Products

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. The company owns or operates over 40 pulp, paper, tissue and wood products facilities in the United States, Canada and South Korea, as well as power generation assets in Canada and the United States. Marketing its products in close to 80 countries, Resolute has third-party certified 100% of its managed woodlands to internationally recognized sustainable forest management standards. The shares of Resolute Forest Products trade under the stock symbol RFP on both the New York Stock Exchange and the Toronto Stock Exchange.

Resolute has received regional, North American and global recognition for its leadership in corporate social responsibility and sustainable development, as well as for its business practices. Visit resolutefp.com for more information.

RESOLUTE FOREST PRODUCTS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in millions except per share amounts)
		Three Months					Nine Months
		Ended September 30,					Ended September 30,
		2016		2015			2016		2015
Sales		$	888	$	905		$	2,656	$	2,751
Costs and expenses:
	Cost of sales, excluding depreciation, amortization and distribution costs		681		687			2,026		2,097 Werbung Mehr Nachrichten zur Resolute Forest Products Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 25.04.24 - PR Newswire Premier Miton Global Renewables Trust Plc - Dividend Declaration 25.04.24 - PR Newswire BlackRock Latin American Investment Trust Plc - Portfolio Update 25.04.24 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Gresham Technologies Plc SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59