Net sales for the second quarter of 2019 decreased by $42 million compared to the second quarter of 2018 as price/mix improvement was more than offset by declines in sales volume. Total company sales volume was down from 706,000 tons during the second quarter of 2018, to 646,000 tons during the second quarter of 2019, due to continued decline of graphic paper demand by our customers, the existing customer inventory overhang and increased graphic paper imports, partially offset by an increase in sales volume of specialty papers, packaging papers and market pulp. Operating income (loss) was a loss of $112 million for the second quarter of 2019, a decrease of $116 million when compared to operating income of $4 million for the second quarter of 2018. Eliminating the cash and non-cash charges relating to the Luke Mill closure, the second quarter 2019 operating income equaled the operating income of the second quarter of 2018 at $4 million. Improved price/mix for the second quarter of 2019 was more than offset by: *Lower sales volume driven by a decline in graphic paper sales, partially offset by an increase in the sales volume of specialty paper, packaging paper and market pulp. *Higher input costs driven by wood fiber and purchased pulp, partially offset by lower chemical costs and favorable weather impacts on energy costs. *Higher operating expenses driven primarily by mill market downtime, partially offset by improved operational performance of our mill system.
Interfor Corporation (“Interfor” or the “Company”) (TSX: IFP) recorded a net loss of $103.8 million, or $1.54 per share, in 2019, compared to net earnings of $111.1 million, or $1.59 per share in 2018. Adjusted EBITDA was $63.4 million on sales of $1.9 billion.
Interfor recorded a net loss in Q4’19 of $41.7 million, or $0.62 per share, compared to $35.6 million, or $0.53 per share in Q3’19 and $13.5 million, or $0.20 per share in Q4’18. Adjusted net loss in Q4’19 was $17.4 million compared to $11.8 million in Q3’19 and $20.2 million in Q4’18.
Adjusted EBITDA was $17.6 million on sales of $456.8 million in Q4’19 versus $16.8 million on sales of $486.5 million in Q3’19.
Included in the Company’s results for Q4’19 are $22.7 million (after-tax) for capital asset write-downs and restructuring costs, or $30.4 million on a pre-tax basis. This includes $13.1 million of non-cash impairments for goodwill related to the reconfiguration of the Company’s B.C. Coastal business and $16.1 million of non-cash asset impairments on assets in the U.S. Northwest business to reflect their fair value, as well as cash costs of $1.2 million for discontinued operations.
details at: http://www.interfor.com/sites/default/files/docs/reports/interfor-reports-q419-results.pdf