Clearwater Paper Corporation provided an update on certain factors that are expected to negatively impact operating results for the third quarter of 2017 by approximately $8 to $9 million, based on preliminary results. The company is currently in the process of completing its financial closing procedures for the third quarter of 2017 and will report final results for the quarter on October 19, 2017. Several factors are expected to negatively impact the company's prior outlook for the third quarter. The planned major maintenance outage at the Lewiston, Idaho, mill is expected to cost an incremental $3 to $4 million as a result of higher than expected repair costs and lost production due to a three-day delay in the startup of the paper machines. However, the delay did not impact the new continuous pulp digester, which commenced start-up as scheduled at the end of the third quarter. Inclement weather caused by hurricanes in the Southeast delayed shipments to customers and contributed to higher transportation expenses and reduced revenues with a net impact totaling approximately $2 million. The expected relief in rising pulp prices in the latter half of the quarter did not materialize contributing to approximately $2 million of incremental expenses. Also, lower than expected case shipments of consumer products and lower converted paperboard shipment volumes are expected to negatively impact results by approximately $1 million. Click Read More below for additional detail.
Huhtamaki accelerates strategy implementation by starting a program which is expected to materially support the profitability of Huhtamaki with efficiency improvements leading to savings of approximately EUR 100 million over the next three years. All cost levers will be addressed including potential restructuring to a more optimal manufacturing footprint, reducing input costs at an accelerated pace, and improving productivity globally. The costs of the program are expected to be approximately EUR 80 million, which upon materialization will be treated as items affecting comparability. The program’s performance will be monitored and communicated on a regular basis.
Huhtamaki’s updated 2030 growth strategy was announced in March 2023. It is focused on scaling the profitable core for growth, innovating in sustainable packaging solutions for additional growth, and delivering world-class operational performance. With this updated strategy the Company raised its long-term financial ambition to grow 5-6% p.a., reach 10-12% adjusted EBIT%, and deliver 13-15% adjusted ROI.
“Over the past two years considerable focus has gone into investing for capacity expansion in our core businesses and innovating in molded fiber and recyclable flexible packaging with proprietary technology. Investments in our new innovation areas are starting to yield results as production capacity is being deployed, further driving our growth agenda.