Nov 02, 2012. /Lesprom Network/. Resolute Forest Products reported net income of $31 million for the third quarter, or $0.32 per diluted share, on sales of $1.2 billion. This compares with a net loss of $44 million, or $(0.46) per share, on sales of $1.2 billion in the third quarter of 2011, as the company said in the press release received by Lesprom Network. Excluding $24 million of special items described below, net income for the quarter was $7 million, or $0.07 per diluted share. Net income excluding special items for the third quarter of 2011 was $50 million, or $0.50 per diluted share. Special items incurred in the third quarter of 2012, net of tax, included: $21 million non-cash gain on translation of Canadian dollar net monetary assets $6 million non-cash credit related to reorganization-related and other tax adjustments $4 million charge related to start-up costs at the Dolbeau mill $3 million gain on disposition of assets $3 million charge related to closure costs, impairment and other related charges $2 million income from other items $1 million charge for post-emergence costs Special items incurred in the third quarter of 2011, net of tax, included: $69 million non-cash charge on translation of Canadian dollar net monetary assets $14 million charge related to closure costs, impairment and other related assets $9 million charge for post-emergence costs $4 million severance charge $3 million income from other items $1 million loss on disposition of assets Adjusted EBITDA of $91 million in the quarter compares with $120 million in the second quarter and $150 million in the third quarter of 2011. Operating income for the third quarter was $26 million, compared to $72 million in the third quarter of 2011. The most significant components of the $46 million variance include: a volume decline for $51 million as a result of the Company reducing its exposure to newsprint export markets pressured by the strong U.S. dollar, its ongoing asset optimization efforts and a temporary but unexpected drop in September lumber shipments. The lower average Canadian dollar this quarter provided a $7 million cost advantage. The Company's asset optimization and restructuring initiatives, as well as more favorable pricing for recovered paper, power and natural gas, led to savings of $13 million in overall input costs, despite $6 million of costs associated with the annual outage at our Fort Frances pulp mill, last taken in the second quarter of 2011. In addition, there was a $10 million unfavorable impact for the annual maintenance and necessary work to improve the operational and environmental performance of the recently acquired St. Felicien mill. While the stronger pricing in wood products offset weak conditions in the market pulp segment, price eroded $9 million of operating income in paper grades, mostly in the coated papers segment. "We're pleased with these results, considering the specific challenges we faced in the quarter and the unexpected extent of the maintenance required to bring our recently acquired St. Felicien mill up to par," said Richard Garneau, president and chief executive officer. "Our cost-focused strategy allowed us to maintain attractive margins in the paper and wood products segments despite lower shipments overall. This is the direct result of our focus on the items we control: selling only profitable tons and maintaining world-class operational standards."