Clearwater Paper Reports Second Quarter 2024 Results

SECOND QUARTER HIGHLIGHTS

• Continued strong demand in tissue, improved demand in paperboard
• Completed acquisition of Augusta paperboard manufacturing facility
• Net sales of $586 million, up 12% from the second quarter of last year, primarily driven by incremental sales volume from Augusta
• Net loss of $26 million, or $1.55 per diluted share compared to $30 million income, or $1.75 per diluted share in the second quarter of last year
• Adjusted EBITDA of $35 million, $36 million less than second quarter of last year, driven by the $32 million impact from the planned major maintenance at the Lewiston, Idaho facility
  

"We completed the acquisition of the Augusta facility in May and our integration is on track. We are pleased with the quality of the assets and are committed to achieving our targeted synergies by the end of 2026,” said Arsen Kitch, president and chief executive officer. “Our tissue business continues to deliver outstanding performance, and we are expecting a gradual recovery in paperboard market demand in the coming quarters.”

STRATEGIC UPDATES

On July 22, 2024, the company announced that it has signed definitive agreements to sell its consumer products division (tissue business) to Sofidel America Corp. for $1.06 billion, subject to customary adjustments. The transaction is subject to regulatory approval other customary closing conditions and is currently expected to close in the fourth quarter of 2024.

“We thoroughly explored strategic options for our tissue business and believe that Sofidel will be well positioned to continue investing in these assets for long-term growth,” said Kitch. "This is a transformational time for Clearwater paper, and we are looking forward to the next chapter of value creation as we continue our strategy to scale and grow our paperboard business.”

Link to full report

Source: Clearwater Paper