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HomeBusinessStrong lumber prices boost Resolute second quarter results at revenues nearly double

Strong lumber prices boost Resolute second quarter results at revenues nearly double


MONTREAL – Resolute Forest Merchandise Inc. is reporting a really sturdy second quarter as internet revenue soared on a close to doubling of revenues as costs reached document highs.

The Montreal-based pulp, paper and lumber producer says its revenue attributable to shareholders was US$268 million or US$3.34 per diluted share, up from US$612 million or seven cents per share a 12 months earlier.

Resolute, which reviews in U.S. {dollars}, says its adjusted revenue was US$300 million or US$3.74 per share, up from a lack of US$22 million or 25 cents within the second quarter of 2020.

Revenues for the three months ended June 30 had been US$1.1 billion, up from US$612 million.

The corporate was anticipated to report US$3.39 per share in adjusted earnings on US$1.05 billion of revenues, in line with monetary knowledge agency Refinitiv.

Wooden merchandise generated US$405 million in internet revenue within the quarter, up from US$15 million within the prior 12 months’s quarter. Market pulp earnings rose to US$30 million from US$10 million, whereas the paper and tissue segments every misplaced US$7 million, in contrast with losses of US$12 million and US$2 million, respectively, a 12 months earlier.

“With benchmark costs reaching document highs in Might and our best-ever quarterly shipments, we used the distinctive money era from our wooden merchandise section to make lasting modifications to our enterprise and improve worth for our shareholders,” acknowledged CEO Remi Lalonde.

He mentioned the corporate decreased debt by US$180 million, declared a US$79-million particular dividend, and introduced an extra US$50 million in tasks to strengthen its wooden merchandise enterprise.

“Though benchmark lumber costs have come down considerably in latest weeks and stay risky, we’re assured within the underlying enterprise fundamentals. We consider in our wooden merchandise enterprise for the long-term, with the section representing a key pillar of our ongoing transformation.”

This report by The Canadian Press was first printed July 29, 2021.

Firms on this story: (TSX:RFP)



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