Resolute Forest Products Inc. reported a GAAP net loss for the quarter ended June 30, 2016, of $42 million, compared to a GAAP net loss of $4 million in the same period in 2015.
Sales were $891 million in the 2Q, down $35 million, or 4%, from the 2Q 2015. Excluding special items, the company reported net income of $6 million, compared to net income of $7 million in the 2Q 2015.
"Despite challenging market conditions in certain of our business segments, we recorded a solid performance this quarter," said Richard Garneau, president and CEO. "Our wood products segment has delivered significant improvements as markets continued their slow recovery. In our paper segments, we continue to demonstrate our ability to generate consistent value despite structurally challenging market conditions, while annual maintenance-related declines in pulp production more than offset benefits of rising market prices. Although our tissue operations continued to underperform and remain a key focus for the year, we are excited by the advancement of our Calhoun tissue project, as we achieve a key milestone this month with the commissioning of our first converting line."
The company recorded an operating loss of $18 million for the 2Q, compared to operating income of $16 million in the year-ago period. Key to the quarter's reported performance was a non-recurring $37 million closure and impairment related charge, almost all of which resulted from the permanent shutdown of a newsprint machine at the Augusta facility during the quarter. A decline in sales arising mostly from comparatively weaker prices was almost entirely offset by reductions in costs and the weaker Canadian dollar.
Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products, newsprint and specialty papers.
