Pulp and Paper Canada

News Financial Reports & Markets Paper Pulp
Resolute’s third quarter results indicate improvement from last year

November 10, 2021  By P&PC Staff/Resolute Forest products

Resolute Forest Products shared its results for the third quarter of this year. The company reported a net income of $80 million, or $0.99 per diluted share, for the quarter ended September 30. The company reported a net income of $57 million, or $0.66 per diluted share, in the same period in 2020. Sales were $817 million in the quarter, an increase of $87 million from the prior year. Excluding special items, the company reported a net income of $67 million, or $0.84 per diluted share, compared to a net income of $62 million, or $0.72 per diluted share, in the third quarter of 2020.

Here are the highlights from the report as posted by the company:

  • Q3 GAAP net income of $80 million / $0.99 per diluted share
  • Adjusted EBITDA of $144 million
  • Liquidity of $930 million / net debt of $184 million at quarter-end
  • Repurchased 1.2 million shares in Q3 (two percent) / 5.5 million shares over the last twelve months (seven percent)
  • Stephanie Leclaire appointed senior vice-president, corporate affairs and chief legal officer, following the announcement of Jacques P. Vachon’s upcoming retirement

“Coming off the record highs in benchmark lumber prices attained in May, this quarter’s results reflect the sizeable impact of peak prices converging back toward the trend,” said Remi G. Lalonde, president and chief executive officer.


“Our pulp and paper businesses built on the momentum of the second quarter, with strong pulp shipments and higher transaction prices in both segments. With our commitment to generating value for shareholders, this quarter we paid the $1 per share special dividend and repurchased 1.2 million shares at an average price of $10.95. The tissue business faced a slow recovery from commercial consumption and this year’s consumer inventory rebalancing, in addition to pandemic-related logistics and labor challenges. This, unfortunately, overshadows the performance of Calhoun tissue, which was profitable in Q3,” added Lalonde.

The company reported an operating income of $102 million in the quarter, compared to $406 million in the second quarter of 2021. The $304 million variation reflects lower realized prices and shipments in wood products ($342 million), partly offset by higher realized prices in the pulp and paper segments ($32 million), and higher volume in market pulp ($9 million).

Market Pulp

The company generated an operating income of $46 million in the market pulp segment, an increase of $16 million from the previous quarter. The average transaction price increased by $39 per metric ton, or five percent, to $826 per metric ton, with gains in all grades. The delivered cost was unchanged from the previous quarter at $665 per metric ton, as shipments rose by 30,000 metric tons as a result of inventory changes. Finished goods inventory fell by 11,000 metric tons, to 52,000. EBITDA in the segment improved by $16 million, to $52 million.


The tissue segment incurred an operating loss of $9 million in the quarter, $2 million wider than the previous quarter. The average transaction price decreased by $60 per short ton, or three percent, due to unfavourable product mix, while delivered costs decreased by $109 per short ton, or five percent, with less downtime than in the previous quarter. Despite pandemic-related headwinds such as labour availability and logistics constraints, shipments increased by 4,000 short tons in the gradually improving retail market and a slowly recovering away-from-home market. Finished goods inventory was 6,000 short tons, down by 2,000 short tons compared to the prior period. Segment EBITDA fell by $1 million, to negative $4 million.


The company generated an operating income of $16 million in the paper segment in the quarter, an increase of $23 million from the previous quarter. The average transaction price rose by $54 per metric ton, or nine percent, with price recovery reflecting tightening global markets. Shipments decreased by 18,000 metric tons and finished goods inventory remained unchanged at 72,000 metric tons, in both cases reflecting a destocking effort over prior periods. The delivered cost was unchanged, reflecting lower maintenance costs related to planned outages in the previous quarter offset by higher chemical and energy prices. Segment EBITDA improved by $22 million, to $31 million.

Print this page


Stories continue below