Total European shipments of graphic papers in May 2021 were UP 27.3% vs. May 2020 and are down 2.5% year-to-date. Total European shipments of newsprint in May 2021 were UP 8.5% vs. May 2020 and are down 9.9% year-to-date. Total European shipments of sc-magazine in May 2021 were UP 17.0% vs. May 2020 and are down 2.9% year-to-date. Total European shipments of coated mechanical reels in May 2021 were UP 25.6% vs. May 2020 and are down 6.1% year-to-date. Total European shipments of uncoated mechanical (improved & others) in May 2021 were UP 13.5% vs. May 2020 and are UP 1.7% year-to-date. Total European shipments of coated woodfree in May 2021 were UP 49.8% vs. May 2020 and are down 2.5% year-to-date. Total European shipments of uncoated woodfree in May 2021 were UP 46.7% vs. May 2020 and are UP 5.7% year-to-date.
Message from the Chairman and Chief Executive Officer
“We saw increasing earnings and operating margins in the second quarter after a successful first quarter. We are also raising our adjusted EBITDA and free cash flow full-year guidance based on our first half of the year performance and our second half outlook,” said Jean-Michel Ribiéras. “We remain committed to reducing debt, investing in high-return projects and returning cash to shareowners as we continue delivering on our investment thesis.”
*In May, we announced the decision to sell our Russian operations
*Management has committed to a plan for the sale, and the business is now classified as discontinued operations in our financial statements; all amounts reported in this news release for current and prior periods, as well as our outlook for the third quarter and full year, exclude our Russian operations unless otherwise noted
Second Quarter Highlights
*Net income from continuing operations of $84 million ($1.89 per diluted share) compared with $55 million ($1.25 per diluted share) in the first quarter of 2022
*Adjusted operating earnings1 (non-GAAP) of $90 million ($2.02 per diluted share) compared with $59 million ($1.34 per diluted share) in the first quarter of 2022, which was $0.12 per diluted share above the high end of the company’s guidance range
*Adjusted EBITDA2 (non-GAAP) of $189 million (20.7% margin) compared with $146 million (17.8% margin) in the first quarter of 2022, which was $9 million above the high end of the company’s guidance range
*Free cash flow3 (non-GAAP) of $39 million compared with $32 million in the first quarter of 2022
*Repaid $48 million of debt, achieving a gross debt-to-adjusted EBITDA ratio of 2.2x
Second Quarter Commercial and Operational Highlights
*Price and mix improved by $73 million versus the prior quarter, mainly due to prior price increases implemented in all regions
*Operations improved by $2 million and total planned maintenance outage expenses rose by $17 million in North America
*Input costs grew by $16 million versus the prior quarter, reflecting higher chemical, energy, fiber and transportation costs
*Adjusted EBITDA margins for Europe, Latin America and North America were 16%, 32% and 16%, respectively
Commercial excellence, operational excellence and financial discipline continue to guide our decisions. Executing our three-prong strategy helped generate a 20.7% adjusted EBITDA margin in the second quarter of 2022 and enabled us to generate $39 million of free cash flow. The free cash flow contributed to the reduction of $48 million of debt.
Sylvamo outperformed industry demand with a strong customer focus. Our facilities operated well in all regions, including safe and efficient annual outages at our two mills in North America.
Based on our strong first half results and our second half outlook, we are raising our full-year adjusted EBITDA guidance from a prior range of $725 million and $775 million to $740 million and $780 million and increasing our free cash flow guidance from a prior range of $160 million and $180 million to $170 million and $190 million.
In May, we announced the decision to sell our Russian operations. We have committed to a plan for the sale, and the business is now classified as discontinued operations. We continue to work with our advisers and potential buyers to secure the regulatory approvals required to complete a sale agreement.
We continue moving toward our targeted gross debt level of $1 billion to reduce risk and increase flexibility while improving free cash flow and equity value. At the same time, we continue developing more than $100 million in high-return capital projects, which will help Sylvamo realize savings as we move into 2023 and beyond.
details at: https://investors.sylvamo.com/news/news-details/2022/Sylvamo-Second-Quarter-Results-Show-Increased-Earnings-and-Operating-Margins-Annual-Guidance-Raised/default.aspx