GAAP net loss was $116 million, compared to a net loss of $588 million in the 3Q 2013 as last year's results were significantly affected by a $619 million non-recurring, non-cash income tax charge.
"Our adjusted EBITDA improved sequentially thanks to the best lumber quarter in recent history and continued strength of market pulp," said Richard Garneau, president and CEO. "We're building momentum in the wood products business: the Thunder Bay pellet plant is starting its ramp-up, our Ignace sawmill is about to begin its own ramp-up, and we're on schedule with the construction of our Atikokan sawmill. Year-to-date shipments of newsprint and specialty papers outperformed industry trends, demonstrating the strength of our position, but we took some newsprint downtime in the quarter to reduce finished goods inventory. More broadly, we met our commitment to reduce finished goods inventory levels in a disciplined manner across all segments, especially pulp."
The company recorded an operating loss of $40 million in the 3Q compared to operating income of $36 million in the year-ago period. Overall pricing was higher as a result of a 13% increase in the average transaction price for wood products and 4% for market pulp, offset in part by 4% lower average pricing for specialty papers and 3% for newsprint. Shipments were 1% higher in both wood products and specialty papers, but they were 9% lower in market pulp, largely because of greater internal consumption of hardwood kraft pulp and market downtime in recycled bleach kraft pulp. Shipments were also 5% lower in newsprint, which reflects lower export volumes compared to the same period last year.
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.
