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Resolute suffers net loss of Can$47m

18.06.2017 − 

Closure and start-up costs, as well as unfavourable currency-exchange-rate effects led in the first quarter to a sharp year-on-year deterioration in results figures at Canadian Resolute Forest Products. In connection with the start-up of the Calhoun tissue plant in New Brunswick, investment costs of Can$51m accrued in the reporting period, and unspecified additional costs were incurred by the closure of the Mokpo paper mill in South Korea.

Declining selling prices for newsprint (-15%), special papers (-7%), tissue (-7%) and pulp (-1%) added to the fall in results. The increase in lumber sales achieved in the first three months and higher selling prices in that sector only partially compensated for the negative effects. With total turnover virtually unchanged at Can$872m, the operating result declined to minus Can$6m. The pre-tax and net results, at minus Can$17m and minus Can$46m respectively, were even further in the red.

In the Wood Products division, a total of 505m bdft were delivered in spite of comparatively difficult weather conditions. With an average price increase of Can$23 to Can$350/1,000 bdft, turnover rose to Can$177m. Both the EBITDA and the operating result improved, at Can$29m and Can$20m respectively. The division’s net result increased to Can$20m; in the same quarter of the previous year, the division had shown a net loss of Can$4m. Stocks of finished goods were at 147m bdft and therefore up year on year by almost 17%.

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