Resolute Forest Products Slips To Loss In Q3, But Adj. Profit Rises

(RTTNews) - Resolute Forest Products Inc. (RFP, RFP.TO) reported a third-quarter 2013 net loss attributable to the company of $588 million or $6.22 per share, compared to net income of $37 million, or $0.38 per share in the same quarter last year.

The company's latest-quarter results were significantly affected by a $619 million non-recurring, non-cash income tax charge to reduce the value of deferred income tax assets on its balance sheet.

Excluding total special items of $617 million, net income in the quarter was $29 million, or $0.31 per share. This compared to net income of $13 million, or $0.13 per share, excluding $24 million of special items, in the third quarter of 2012. Analysts polled by Thomson Reuters expected the company to report earnings of $0.23 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly sales declined to $1.13 billion from last year's $1.15 billion.

"Building on the encouraging developments this quarter, we see the pulp segment maintaining its positive momentum into the fourth quarter, but the timing of worldwide capacity increases makes 2014 somewhat more uncertain. Wood products should experience better overall pricing in the fourth quarter, based on the gradual increase in lumber prices from the lows late in June. Costs will remain under pressure, however, given lower wood allocation and the additional burdens imposed on producers with the province of Québec's newly-implemented forest tenure system," said Richard Garneau, president and chief executive officer.