Clearwater Paper 3Q net sales down 1.6 per cent to $435.3 million
(Spokane, Wash., USA, Oct. 20, 2016) Clearwater Paper Corporation reported net sales of $435.3 million for the 3Q 2016, down 1.6% compared to net sales of $442.2 million for the 3Q 2015.
Net earnings determined in accordance with generally accepted accounting principles, or GAAP, for the 3Q 2016 were $0.9 million, or $0.05 per diluted share, compared to $23.1 million, or $1.21 per diluted share, for the 3Q 2015.
Excluding certain items identified in the attached reconciliations to GAAP, 3Q 2016 adjusted net earnings were $2.4 million, or $0.14 per diluted share, compared to 3Q 2015 adjusted net earnings of $24.4 million, or $1.28 per diluted share.
The decrease in net earnings was due primarily to $18 million of pre-tax planned major maintenance at the company’s Lewiston, Idaho pulp and paperboard facility, lower paperboard pricing and shipments, $3.5 million of pre-tax net costs incurred from an unplanned power outage at the Lewiston facility, a $3.5 million pre-tax settlement charge associated with a pension lump sum buyout, and contractual wage increases. These items were partially offset by higher productivity and lower input costs for transportation, chemicals and natural gas.
Earnings before interest, taxes, depreciation and amortization, or EBITDA, was $32 million for the 3Q 2016 compared to $61.3 million for the 3Q 2015. Adjusted EBITDA for the quarter was $34.3 million, down 45.7% compared to 3Q 2015 Adjusted EBITDA of $63.2 million.
“Clearwater Paper achieved 3Q financial results at the high end of our outlook with increased retail sales volumes in consumer products that helped to mitigate continued challenging paperboard market conditions,” said Linda K. Massman, president and CEO. “The team’s outstanding focus on implementing our strategic capital projects and operational efficiencies also contributed to our results.”
Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, parent roll tissue, bleached paperboard and pulp.
Pulp & Paperboard Division:
Net sales of $182 million for the third quarter of 2016 was down 3.6% versus the second quarter and well below the company’s guidance range of flat to down 1%, due primarily to 1.4% lower shipped volumes and 2.2% lower price mix as the company saw the full impact of the April RISI price decrease as well as a less favorable product mix. Pulp and paperboard adjusted operating income for the third quarter of 2016 was $10 million or 5.5% of net sales as compared to $40 million or 21.2% of net sales in the second quarter. The margin decrease versus Q2 was mainly due to the 18 million of planned major maintenance costs for the company’s Lewiston mill plus $3 million from the impact of the late Q2 Arkansas water wash flowing through the Q3 P&L and a net $4 million in costs associated with electrical outage at the Lewiston mill. Pulp and paperboard’s Q3 adjusted EBITDA margin was 9.1%. (Source: press release)