Resolute Forest Products Inc. saw weaker sales this spring compared with a year ago, as the economic downturn slashed paper shipments by 27 per cent.
The Montreal-based company says it earned US$6 million, or seven cents per diluted share, on sales of US$612 million for the three months ending on June 30.
That’s down from US$25 million, or 27 cents per diluted share, on sales of US$755 million in the second quarter of 2019.
A spike in demand for tissue early in the COVID-19 pandemic sent prices higher but shipments fell amid drained inventory, said the company, which keeps its books in U.S. dollars.
Despite diminishing demand for paper at commercial printers and newspapers, the housing market recovery in the U.S., paired with strong interest in remodelling and decking, boosted the lumber business.
Excluding one-time items, the company’s adjusted loss was 25 cents per share during the quarter, a narrower loss than the 30 cents per share expected by Refinitiv estimates, and compared with a 12 cents per share adjusted profit a year ago. Revenue, however, was softer than the $628 million expected by analysts.
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