Resolute Forest Products Inc. reported a GAAP net loss for the quarter ended June 30, 2016, of $42 million, or $0.47 per share, compared to a GAAP net loss of $4 million, or $0.04 per share, in the same period in 2015. Sales were $891 million in the quarter, down $35 million, or 4%, from the second quarter of 2015. Excluding special items, the company reported net income of $6 million, or $0.07 per share, compared to net income of $7 million, or $0.07 per share, in the second quarter of 2015. "Despite challenging market conditions in certain of our business segments, we recorded a solid performance this quarter," said Richard Garneau, president and chief executive officer. "Our wood products segment has delivered significant improvements as markets continued their slow recovery. In our paper segments, we continue to demonstrate our ability to generate consistent value despite structurally challenging market conditions, while annual maintenance-related declines in pulp production more than offset benefits of rising market prices. Although our tissue operations continued to underperform and remain a key focus for the year, we are excited by the advancement of our Calhoun tissue project, as we achieve a key milestone this month with the commissioning of our first converting line."
Paper Excellence is announcing the permanent closure of the Paper and TMP Operations at the Howe Sound Mill effective immediately.
“In light of the extreme drought conditions experienced since May, the decision to cease paper operations was advanced to help conserve water supply”, Steve Bird, General Manager of Howe Sound Pulp & Paper. “The future of our mill lies with our strong pulp and green energy opportunities that will continue to grow.”
With newsprint and value added newsprint prices declining, combined with a shrinking market that is expected to continue, HSPP undertook an extensive review process to look at other product options and found that either our equipment and furnish was not suitable nor could it be easily and economically modified, or that the markets could support demand for those new products.
Between operations and maintenance and other support departments, this permanent closure will result in a reduction of approximately 180 employees who will be offered comprehensive severance packages, potential relocation to other Paper Excellence-owned mills, and career counselling.
“While this has been a difficult decision to make, the Kraft pulp mill and power generating businesses at the Howe Sound Mill will now become stronger and more sustainable.” David Kerr, Vice President with Paper Excellence Canada, states.