Resolute Forest Products , formerly known as AbitibiBowater, reported a fourth-quarter loss on Thursday on lower demand and weaker pricing for its pulp products.
Montreal-based Resolute said its loss in the quarter ended Dec. 31 came in at $6-million, or 6 cents a share, compared with a year-earlier profit of $4.2-billion, or $44.82, when results benefited from a huge gain related to the company’s reorganization.
Quarterly sales fell nearly 10 per cent to $1.15-billion.
“Lower demand and weaker pricing for kraft pulp had the most significant impact on fourth quarter results,” chief executive officer Richard Garneau said in a statement.
The company said it continues to control its finished goods inventory by using temporary shutdowns to offset the slowdown in demand caused by recent economic uncertainty.
“Pricing in the market pulp segment appears to be stabilizing, but the timing of any improvement from current lows is uncertain,” Mr. Garneau said.
Resolute said it expects to see stable newsprint pricing in the Americas, but continued pressure in other U.S. dollar-based export newsprint markets as long as the combination of low old-newspaper pulp prices and a strong U.S. dollar continues.