Resolute Forest Products Inc (ABH) saw its loss widen to $47 million, or $0.52 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $8 million, or $0.09 a share. On the other hand, adjusted net loss for the quarter widened to $30 million, or $0.33 a share from a loss of $22 million or $0.25 a share, a year ago. Revenue during the quarter went down marginally by 0.57 percent to $872 million from $877 million in the previous year period. Gross margin for the quarter expanded 70 basis points over the previous year period to 23.51 percent. Operating margin for the quarter stood at negative 0.69 percent as compared to a positive 12.77 percent for the previous year period.
Operating loss for the quarter was $6 million, compared with an operating income of $112 million in the previous year period.
However, the adjusted operating income for the quarter stood at $10 million compared to $3 million in the prior year period. At the same time, adjusted operating margin improved 80 basis points in the quarter to 1.15 percent from 0.34 percent in the last year period.
“While we continued to face strong headwinds in our paper businesses this quarter, our three other segments (pulp, tissue and wood products) recorded stronger results than in the fourth quarter,” said Richard Garneau, president and chief executive officer. “We saw key achievements in the quarter, particularly in our tissue segment. Our Calhoun tissue machine started-up one month ahead of schedule in structured mode, a first for this technology which allowed us to manufacture premium products right from the start. Those achievements were overshadowed by the imposition of countervailing duties on our softwood lumber exports from Canada to the United States. We firmly believe that central Canadian forestry regimes are market-based and we should expect nothing less than unencumbered and free access to the U.S. lumber market.”
Operating cash flow turns negative
Resolute Forest Products Inc has spent $39 million cash to meet operating activities during the quarter as against cash inflow of $6 million in the last year period. The company has spent $75 million cash to meet investing activities during the quarter as against cash outgo of $48 million in the last year period.
Cash flow from financing activities was $118 million for the quarter, up 490 percent or $98 million, when compared with the last year period.
Cash and cash equivalents stood at $39 million as on Mar. 31, 2017, up 5.41 percent or $2 million from $37 million on Mar. 31, 2016.
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