Resolute Forest Products Inc. reported net income for the 4Q ended December 31, 2018, of $36 million, compared to $13 million in the same period in 2017. Sales were $932 million in the 4Q 2018, an increase of $34 million from the year-ago period, as the company says in the press release received by Lesprom Network.
The company reported operating income of $75 million in the 4Q, compared to $135 million in the 3Q 2018.
For the year, the company reported GAAP net income of $235 million, compared to a net loss of $84 million in 2017. FY 2018 sales were $3.8 billion, up 7%, from the previous year. Excluding special items, the company reported net income of $183 million, compared to $12 million in 2017.
The company generated $379 million of operating income in 2018, compared to $42 million in 2017, mostly due to higher average transaction prices across all business segments.
The average transaction price increased by 19% for market pulp, 17% for newsprint, 13% for wood products and 9% for specialty papers. Operating results also benefited from gains on disposition of assets of $145 million, compared to a $15 million gain recorded in 2017 mostly related to the disposition of the assets at the Mokpo (South Korea) paper mill.
"With our optimized asset base, we were able to deliver strong annual performance with the positive market dynamics in the year, despite cost headwinds and a soft lumber market in the fourth quarter," said Yves Laflamme, president and CEO. "We experienced significantly weaker pricing for lumber in the quarter, unforeseen operational disruptions, planned maintenance, as well as higher energy and wood costs. Despite these challenges, we generated $435 million of cash from operations in 2018, monetized the Catawba and Fairmont assets at attractive valuations, returned $136 million of capital to shareholders through a special dividend and further reduced our leverage shortly after year-end. Our stronger balance sheet improves our financial strength and flexibility and positions us well for future growth opportunities."
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.
