Resolute Reports Preliminary Third Quarter 2017 Results

Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) today reported net income for the quarter ended September 30, 2017, of $24 million, or $0.26 per share, compared to net income of $14 million, or $0.15 per share, in the same period in 2016. Sales were $885 million in the quarter, essentially unchanged from the third quarter of 2016. Excluding special items, the company reported net income of $31 million, or $0.34 per share, compared to net income, excluding special items, of $15 million, or $0.17 per share, in the third quarter of 2016.

“This quarter’s solid performance builds on the momentum established earlier in the year,” said Richard Garneau, president and chief executive officer. “Our results benefitted from continued strength in our market pulp and wood products segments as well as from substantial improvements in the cost position of our paper segments following capacity closures and restructuring of operations announced earlier this year. In tissue, our sales effort continues to progress, but our results were negatively impacted by Hurricane Irma.”

Non-GAAP financial measures, such as adjustments for special items and adjusted EBITDA, are explained and reconciled below.

Consolidated
The company recorded operating income of $48 million in the quarter, an improvement of $95 million compared to the second quarter of 2017, as adjusted EBITDA increased to $118 million from $83 million in the previous quarter.

The company’s operating results were positively impacted by increases in sales of market pulp and wood products, where shipments and pricing improved compared to the previous quarter. Profitability was also supported by lower manufacturing costs and savings derived from the closure of a high cost machine in our specialty papers segment, resulting in operating margin improvements that offset volume declines.

The company incurred $21 million of closure costs, impairment and other related charges, and inventory write-downs in the third quarter linked primarily to the permanent closure of two paper machines at Calhoun (Tennessee). This compares favorably to the $65 million recorded in the second quarter.
more detail at:  http://resolutefp.mediaroom.com/2017-11-02-Resolute-Reports-Preliminary-Third-Quarter-2017-Results

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