Resolute Forest Products Inc. reported net income for the quarter ended June 30, 2020, of $6 million, or $0.07 per diluted share, compared to net income of $25 million, or $0.27 per diluted share, in the same period in 2019.
Sales were $612 million in the 2Q 2020, a decrease of $143 million from the year-ago period. Excluding special items, the company reported a net loss of $22 million, or $0.25 per share, compared to net income of $11 million, or $0.12 per diluted share, in the second quarter of 2019.
"The Covid-19 pandemic and ensuing economic slowdown have brought with them unprecedented challenges and business uncertainty," said Yves Laflamme, president and CEO. "Despite the challenging business environment, except for the low-interest term loan used to finance the acquisition of the U.S. sawmills, we repaid all of the borrowings we drew in Q1, and our liquidity improved to nearly $400 million. On the business side, we've seen stronger pulp pricing and higher lumber shipments in the second quarter, offset by a weaker paper segment, which reflects lower demand levels since the onset of the pandemic and our resulting capacity adjustments. We're pleased with the integration of our recently-acquired U.S. sawmills and we're excited about their prospects."
The company reported operating income of $6 million in the 2Q 2020, compared to operating income of $40 million in the 2Q 2019. The change reflects lower selling prices in the pulp and paper segments ($55 million) and lower paper shipments ($40 million), partially offset by favorable manufacturing costs ($18 million), higher pricing in the wood products and tissue segments ($14 million) and the added contribution of the recently-acquired U.S. sawmills ($6 million).
2Q adjusted EBITDA was $37 million, $45 million lower than the 2Q 2019.
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.