Clearwater Paper Corporation provided an update on certain factors that are expected to negatively impact operating results for the 3Q 2017 by approximately$8to$9 million, based on preliminary results.
Several factors are expected to negatively impact the company's prior outlook for the 3Q. The planned major maintenance outage at theLewiston, Idaho, mill is expected to cost an incremental$3to$4 millionas a result of higher than expected repair costs and lost production due to a three-day delay in the startup of the paper machines.
However, the delay did not impact the new continuous pulp digester, which commenced start-up as scheduled at the end of the 3Q. Inclement weather caused by hurricanes in the Southeast delayed shipments to customers and contributed to higher transportation expenses and reduced revenues with a net impact totaling approximately$2 million.
The expected relief in rising pulp prices in the latter half of the quarter did not materialize contributing to approximately$2 millionof incremental expenses. Also, lower than expected case shipments of consumer products and lower converted paperboard shipment volumes are expected to negatively impact results by approximately$1 million.
"Although we are disappointed with the expected negative impact to our 3Q results, we remain confident in our long-term plan to improve operating efficiencies and lower costs," saidLinda Massman, president and CEO.
Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, parent roll tissue, bleached paperboard and pulp.
