Clearwater Paper Earnings 8-1-2019

LEWISTON, ID - Clearwater Paper Corporation on Wednesday reported financial results for the second quarter of 2019. The company reported net sales of $452.0 million for the second quarter of 2019, which were $19.9 million or 4.6% higher than net sales of $432.1 million for the second quarter of 2018. The increase was due to record quarterly paperboard shipments and sales, higher retail tissue shipments and higher paperboard and tissue pricing from previously announced price increases. These items were partially offset by lower non-retail tissue shipments primarily resulting from the sale of the company's mill in Ladysmith, Wisconsin in August 2018.

Net loss for the second quarter of 2019 was $0.4 million, or $0.03 per diluted share, compared to net earnings for the second quarter of 2018 of $7.0 million, or $0.42 per diluted share. The decrease in net earnings was due to maintenance costs at the company's Shelby, North Carolina, Cypress Bend, Arkansas and Lewiston mills, costs associated with the start-up of the company's new paper machine and converting lines at its North Carolina mill and higher depreciation and interest expense, partially offset by the favorable impact of higher shipment volumes and pricing.

“We delivered a solid second quarter with record paperboard shipments and sales, and higher shipments of converted retail tissue, compared to the first quarter of 2019," said Linda K. Massman, president and chief executive officer. "Partially offsetting those results were the start-up costs related to our new paper machine in Shelby, North Carolina, which is progressing well and is expected to reach its full production run rate in late 2020. ”