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Clearwater Paper 2Q 2019 Results: Sales up 4.6 Percent to $452 Million
Clearwater Paper Corporation has reported financial results for the second quarter of 2019. The company reported net sales of $452 million for the second quarter of 2019, which were $19.9 million or 4.6 percent higher than net sales of $432.1 million for the second quarter of 2018. The increase was due to record quarterly paperboard shipments and sales, higher retail tissue shipments and higher paperboard and tissue pricing from previously announced price increases. These items were partially offset by lower non-retail tissue shipments primarily resulting from the sale of the company's mill in Ladysmith, WI, in August 2018. Net loss determined in accordance with generally accepted accounting principles, or GAAP, for the second quarter of 2019 was $0.4 million compared with net earnings for the second quarter of 2018 of $7 million. The decrease in net earnings was due to maintenance costs at the company's Shelby, NC, Cypress Bend, AR, and Lewiston, ID, costs associated with the start-up of the company's new paper machine and converting lines at its North Carolina mill and higher depreciation and interest expense, partially offset by the favorable impact of higher shipment volumes and pricing. “We delivered a solid second quarter with record paperboard shipments and sales, and higher shipments of converted retail tissue, compared to the first quarter of 2019," said Linda K. Massman, president and CEO. "Partially offsetting those results were the start-up costs related to our new paper machine in Shelby, North Carolina, which is progressing well and is expected to reach its full production run rate in late 2020.” Net sales in the Consumer Products segment were $224.3 million for the second quarter of 2019, up 1.2 percent compared with second quarter 2018 net sales of $221.6 million. This increase was due to higher retail tissue volumes sold, higher average prices for both retail and non-retail tissue products and a favorable mix shift to a higher percentage of retail and ultra-quality products, partially offset by the impact from the divestiture of the Ladysmith, WI, mill in August 2018. Segment operating loss for the second quarter of 2019 was $5.1 million, compared with an operating loss of $3.6 million in the second quarter of 2018. Adjusted operating loss was $5.1 million for the second quarter of 2019, compared with an adjusted operating loss of $2.6 million for the same period in 2018. The increased operating loss was primarily due to Shelby start-up costs, higher depreciation expense resulting from the completion of the Shelby mill expansion and higher pulp costs, which were partially offset by lower transportation costs. Tissue Sales Volumes and Prices: |
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