Clearwater Paper Q2 net loss widens as facility outage weighed on results

Overview

• US paperboard packaging supplier's Q2 sales slightly beat analyst expectations

• Company posted Q2 net loss and negative adjusted EBITDA due to lower pricing and maintenance outage

• Company restructured Cypress Bend facility, cutting roles and targeting $8-12 mln annual savings

Outlook

• Company sees early signs of improvement in SBS industry conditions, including volume growth and lower imports

• Clearwater Paper says SBS pricing remains below levels necessary to generate acceptable returns

• Company will focus on cost reduction, operational execution, and implementing previously announced price increases

Result Drivers

• LOWER PRICING - Co said lower market pricing was the main driver of reduced sales and profitability in Q2

• MAINTENANCE OUTAGE - Timing and cost of major maintenance outage at Lewiston, Idaho facility weighed on Q2 results

• VOLUME GROWTH - Co reported 8% increase in sales volumes, helping offset some of the impact from lower prices

Company press release: ID:nBw3fnHQ2a

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the paper products peer group is "buy"

• Wall Street's median 12-month price target for Clearwater Paper Corp is $18.00, about 4.5% above its July 27 closing price of $17.22

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)