"Costs and margins normalized this quarter after the disappointing weather-affected 1Q, delivering much stronger performances in each of our four segments," said Richard Garneau , president and CEO. "We generated 50% of our adjusted EBITDA from our wood products and market pulp businesses in the last twelve months. Our competitive advantage rests on our cost-focused strategy and diversified asset base, giving us the tools to maximize earnings power in this challenging industry."
The Company recorded an operating loss of $8 million in the 2Q, compared to operating income of $3 million in the year-ago period. Overall pricing was essentially unchanged in the quarter, as the 8% increase in market pulp prices was offset with lower average transaction prices in newsprint, specialty papers and wood products.
Newsprint shipments rose by 3% and wood products by 22%, while specialty papers shipments were 2% lower. The increase in lumber shipments reflects an increase to production capacity and better market demand.
At $18 million in the 2Q, Newsprint segment generated $33 million more operating income compared to the 1Q. Shipments rose by 6%, or 32,000 metric tons, as the Company recovered from weather-related production disruptions and mechanical failures experienced in the first quarter, despite fiber availability limitations at certain mills in Québec.
Specialty papers segment generated an operating loss of $3 million in the quarter, compared to a loss of $24 million in the previous quarter. Volume rose by 8% overall, led mostly by stronger shipments of white papers but also including improvements in other grades. The increase reflects a seasonal pick-up in catalogue and retail end-uses from first quarter lows as well as better production consistency following the weather-related production disruptions and mechanical failures experienced in the 1Q.
Operating income in the Market pulp segment rose by $16 million in the 2Q, to $24 million.
Compared to the 1Q, operating income in the wood products segment rose by $3 million, to $15 million.
Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including newsprint, specialty papers, market pulp and wood products.
