Clearwater Paper Provides Update to Second Quarter Outlook

June 19, 2014 - Clearwater Paper Corporation (CLW) yesterday narrowed its outlook for the second quarter ending on June 30, 2014 from the consolidated revenue and operating margin ranges provided as part of the company’s first quarter 2014 earnings call on April 23, 2014 to the ranges provided in the table below:
                 
        Q2-2014 Outlook
       

On April 23, 2014

     

"UPDATED" June 18, 2014

Revenues:       Up 3-5% from Q1-14       Up 3-4% from Q1-14
Operating Margin:       6-8%       6-7%
                 

The ranges have been narrowed to the lower end due to operational issues at the company’s Arkansas pulp and paperboard facility which have more than offset record shipments from its Lewiston pulp and paperboard facility. The Arkansas operational issues caused both the pulp mill and paper machine to consume elevated levels of energy and chemicals while producing at lower throughputs which is negatively impacting production costs and shipment volumes in the second quarter. Additionally, wet weather conditions in the southeastern U.S. have driven fiber prices higher.

"While we believe that our Arkansas team has resolved the paper machine issues, the challenges with the pulp mill are not expected to be fully resolved until the next major maintenance at our Arkansas facility scheduled for March of 2015. As a result, we expect a $1 million cost headwind per quarter through the first quarter of 2015," said Linda K. Massman, president and chief executive officer.

"On the tissue side of the business, we are very pleased with the progressive strengthening in orders in May and June; however, that has been offset by persistently high market pulp prices and lower conventional tissue pricing," said Massman.

"Overall, we are intensely focused on bringing efficiencies to every part of our operation," she added.

An updated "Outlook" slide providing the company’s current expectations and estimates as to certain costs, pricing, shipment and production factors for the second quarter of 2014 can be accessed by clicking here.

Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, parent roll tissue, machine glazed tissue, bleached paperboard and pulp at 14 manufacturing locations in the U.S. and Canada. To learn more, please visit: www.clearwaterpaper.com.

SOURCE: Clearwater Paper Corporation