Resolute Forest Products Inc. reported net income for the quarter ended September 30, 2016, of $14 million, compared to a GAAP net loss of $6 million in the same period in 2015.
Sales were $888 million in the 3Q 2016, down $17 million, or 2%, from the 3Q 2015. Excluding special items, the company reported net income of $19 million, compared to net income of $14 million in the 3Q 2015.
The company recorded operating income of $10 million for the 3Q, including an operating loss of $5 million for tissue, compared to operating income of $6 million in the year-ago period. Reductions in cost of sales, depreciation and amortization, and distribution expenses totaled $48 million, more than offsetting a decline in sales of $40 million, excluding tissue.
"Our wood products segment had record results this quarter, one example that our long-term transformation strategy is on track. In our tissue segment, the consolidation of our acquisition of Atlas continues, and our tissue project in Calhoun now has one converting line on two shifts and another being commissioned, while the tissue machine is on-target for startup by the end of the 1Q of next year," said Richard Garneau, president and CEO. "However, we also recognize the significant challenges we are facing in our pulp and paper segments, which remain critical to delivering overall value. Our quarterly results in those businesses were handicapped by rising input prices, additional maintenance, and continued excess supply dynamics."
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.
