Resolute Forest Products Inc. (ABH) saw its loss narrow to $45 million, or $0.50 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $214 million, or $2.39 a share. On the other hand, adjusted net loss for the quarter narrowed to $3 million, or $0.03 a share from a loss of $26 million or $0.29 a share, a year ago.
Revenue during the quarter went down marginally by 0.56 percent to $889 million from $894 million in the previous year period. Gross margin for the quarter expanded 393 basis points over the previous year period to 22.38 percent. Operating margin for the quarter stood at negative 2.02 percent as compared to a negative 25.28 percent for the previous year period.
Operating loss for the quarter was $18 million, compared with an operating loss of $226 million in the previous year period.
However, the adjusted operating profit for the quarter stood at $18 million compared to operating loss of $20 million in prior year period.
"We maintained our focus on costs and reliability, delivering improved operating performance compared to the third quarter," said Richard Garneau, president and chief executive officer. "Contribution from our paper segments ended the year on a solid note, as cost reductions offset price declines. Our pulp segment showed great resilience despite market pricing pressures, as our continuous digester at Calhoun had higher production and chemical costs were brought under control. In tissue, our efforts at Atlas started to yield results and our Calhoun converting operations are now fully commissioned. We expect the startup of our new tissue machine to begin over the coming weeks. In wood products, we maintained our volume gains from prior quarters and recorded one of our strongest annual performances in recent years."
Operating cash flow drops significantly
Resolute Forest Products Inc. has generated cash of $81 million from operating activities during the year, down 41.30 percent or $57 million, when compared with the last year.
The company has spent $273 million cash to meet investing activities during the year as against cash outgo of $352 million in the last year.
Cash flow from financing activities was $169 million for the year as against cash outgo of $62 million in the last year period.
Cash and cash equivalents stood at $35 million as on Dec. 31, 2016, down 39.66 percent or $23 million from $58 million on Dec. 31, 2015.
Debt increases substantially
Resolute Forest Products Inc. has witnessed an increase in total debt over the last one year. It stood at $762 million as on Dec. 31, 2016, up 28.93 percent or $171 million from $591 million on Dec. 31, 2015.
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