Clearwater Paper Corporation (NYSE: CLW), a premier supplier of bleached paperboard and quality tissue products, announced an update to the company’s previous outlook for the fourth quarter and full year 2022.
Due to higher-than-expected major maintenance related costs at the company’s Lewiston, Idaho mill, and other operational issues, the company now expects Adjusted EBITDA for the fourth quarter of 2022 to be in the range of $28 to $34 million and full year 2022 Adjusted EBITDA of $227 to $233 million. The planned major maintenance outage at Lewiston has now been completed and the mill is operating normally. The other operational issues, particularly at the company’s Cypress Bend, Arkansas mill, have been identified and are being addressed.
With the completion of the outage in Lewiston, the company now intends to perform its next planned major maintenance outage at that site in early 2024, in conjunction with the recovery boiler tube replacement project. As a result, based on current assumptions, the company expects to incur approximately $28 million of lower major maintenance related expenses and other impacts in 2023 compared to 2022.
“We are glad to have the maintenance outage behind us. Despite the setbacks experienced, we completed the work as planned and are now anticipating the next Lewiston outage in early 2024,” said Arsen Kitch, president and chief executive officer. “We continue to experience solid demand for our products and believe that we are well positioned for continued success in 2023.”
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