Home / Business and Economy / Clearwater Paper Reports $21M Loss Amid Price Drop
Clearwater Paper Reports $21M Loss Amid Price Drop
29 Jul
Summary
- Clearwater Paper reported a $21 million net loss from continuing operations.
- Lower market pricing and a major maintenance outage impacted results.
- Iran conflict contributed to increased chemical and transportation costs.
Clearwater Paper announced a second-quarter net loss from continuing operations amounting to $21 million, or $1.33 per diluted share. This financial result was adversely affected by a significant drop in market pricing and a major maintenance outage.
The company's net sales reached $375 million in the quarter. Although shipment volumes saw an 8% increase compared to the previous year, market pricing, as measured by the RISI index, fell by 9%.
A major maintenance outage at the Lewiston, Idaho facility, completed in June, incurred direct costs of approximately $22 million. This, along with higher-than-expected transportation costs, pressured quarterly results.
Furthermore, the Iran conflict contributed to approximately $5 million in increased chemical and transportation costs during the second quarter. Clearwater Paper anticipates an additional $3 million to $5 million in cost pressures in the third quarter and estimates the conflict could reduce full-year results by $20 million to $25 million.
