Resolute Reports Preliminary Third Quarter 2021 Results

Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) today reported net income of $80 million, or $0.99 per diluted share, for the quarter ended September 30, compared to net income of $57 million, or $0.66 per diluted share, in the same period in 2020. Sales were $817 million in the quarter, an increase of $87 million from the prior year. Excluding special items, the company reported net income of $67 million, or $0.84 per diluted share, compared to net income of $62 million, or $0.72 per diluted share, in the third quarter of 2020.

“Coming off the record highs in benchmark lumber prices attained in May, this quarter’s results reflect the sizeable impact of peak prices converging back toward trend,” said Remi G. Lalonde, president and chief executive officer. “Our pulp and paper businesses built on the momentum of the second quarter, with strong pulp shipments and higher transaction prices in both segments. With our commitment to generate value for shareholders, this quarter we paid the $1 per share special dividend and repurchased 1.2 million shares at an average price of $10.95. The tissue business faced a slow recovery from commercial consumption and this year’s consumer inventory rebalancing, in addition to pandemic-related logistics and labor challenges. This unfortunately overshadows the performance of Calhoun tissue, which was profitable in Q3.”

The company reported operating income of $102 million in the quarter, compared to $406 million in the second quarter of 2021. The $304 million variation reflects lower realized prices and shipments in wood products ($342 million), partly offset by higher realized prices in the pulp and paper segments ($32 million), and higher volume in market pulp ($9 million).

The wood products segment generated operating income of $64 million in the quarter, a decrease of $341 million from the previous quarter. With benchmark lumber prices falling from the record highs attained in May, the average transaction price fell to $573 per thousand board feet, a $583 per thousand board feet, or 50%, decrease from the previous quarter.

The company generated operating income of $46 million in the market pulp segment, an increase of $16 million from the previous quarter. The average transaction price increased by $39 per metric ton, or 5%, to $826 per metric ton, with gains in all grades.

The tissue segment incurred an operating loss of $9 million in the quarter, $2 million wider than the previous quarter. The average transaction price decreased by $60 per short ton, or 3%, due to unfavorable product mix, while delivered costs decreased by $109 per short ton, or 5%, with less downtime than in the previous quarter.

The company generated an operating income of $16 million in the paper segment in the quarter, an increase of $23 million from the previous quarter. The average transaction price rose by $54 per metric ton, or 9%, with price recovery reflecting tightening global markets.
details at: https://resolutefp.mediaroom.com/2021-11-04-Resolute-Reports-Preliminary-Third-Quarter-2021-Results

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