MONTREAL — Resolute Forest Products Inc. had a better start to the year than it did in 2018.
The company on Tuesday reported, for the first quarter of 2019, net income of $42 million compared with $10 million in the same period last year.
Sales actually fell by about 10 per cent from the first quarter of 2018.
However, the company noted that sales last year included two mills in the U.S. which it sold at the end of 2018.
Excluding special items, net income from January 1, 2019 to March 31, 2019 totalled $30 million, compared with $17 million a year ago.
"Our diversified asset base continued to produce strong EBITDA [earnings before interest, tax, depreciation and amortization] despite building market pressure in some of our businesses," said president and CEO Yves Laflamme.
"Our quarterly results benefitted from improved productivity, which allowed us to absorb the significant rise in wood fiber costs and offset the reduction in EBITDA associated with the divestiture of the Catawba, South Carolina mill," Laflamme added.
In a summary of the performance of its newsprint operations, Resolute's report noted "higher contribution from the Thunder Bay cogeneration assets, following a turbine failure in the previous quarter, and overall lower maintenance costs, were largely offset by higher fiber and energy costs."
Laflamme said that despite softening market conditions for paper, that side of the business generated strong first quarter EBITDA margins, and the company is confident it "can continue to produce attractive cash flows" as it takes steps to reduce inventory and maintain a competitive cost position.
