SPOKANE, Wash.--(BUSINESS WIRE)--
Clearwater Paper Corporation (NYSE: CLW) today provided an update
on certain factors that are expected to negatively impact operating
results for the third quarter of 2017 by approximately $8 to $9 million,
based on preliminary results. The company is currently in the process of
completing its financial closing procedures for the third quarter of
2017 and will report final results for the quarter on October 19, 2017.
Several factors are expected to negatively impact the company's prior
outlook for the third quarter. The planned major maintenance outage at
the Lewiston, Idaho, mill is expected to cost an incremental $3 to $4
million as a result of higher than expected repair costs and lost
production due to a three-day delay in the startup of the paper
machines. However, the delay did not impact the new continuous pulp
digester, which commenced start-up as scheduled at the end of the third
quarter. Inclement weather caused by hurricanes in the Southeast delayed
shipments to customers and contributed to higher transportation expenses
and reduced revenues with a net impact totaling approximately $2
million. The expected relief in rising pulp prices in the latter half of
the quarter did not materialize contributing to approximately $2 million
of incremental expenses. Also, lower than expected case shipments of
consumer products and lower converted paperboard shipment volumes are
expected to negatively impact results by approximately $1 million.
"Although we are disappointed with the expected negative impact to our
third quarter results, we remain confident in our long-term plan to
improve operating efficiencies and lower costs," said Linda Massman,
president and chief executive officer.
Third Quarter 2017 Earnings Release and Conference Call
Clearwater Paper expects to release its 2017 third quarter earnings on
Thursday, October 19, 2017, after the market close. Clearwater Paper
management will host a live conference call to discuss the earnings
release, the results of operations, and other matters after its earnings
press release on Thursday, October 19, 2017, at 2:00 pm Pacific Daylight
Time.
Webcast
The webcast and presentation slides, which will provide certain outlook
information, can be accessed at Clearwater Paper's website: http://ir.clearwaterpaper.com
Replay Information
A replay of the webcast will be available until October 19, 2018 at
Clearwater Paper's website: http://ir.clearwaterpaper.com/results.cfm
ABOUT CLEARWATER PAPER
Clearwater Paper manufactures quality consumer tissue, away-from-home
tissue, parent roll tissue, bleached paperboard and pulp at
manufacturing facilities across the nation. The company is a premier
supplier of private label tissue to major retailers and wholesale
distributors, including grocery, drug, mass merchants and discount
stores. In addition, the company produces bleached paperboard used by
quality-conscious printers and packaging converters, and offers services
that include custom sheeting, slitting and cutting. Clearwater Paper's
employees build shareholder value by developing strong customer
partnerships through quality and service.
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995 as
amended, including statements regarding the company's expected third
quarter 2017 financial results, as well as the company's long term plan
to improve operating efficiencies and lower costs. These forward-looking
statements are based on current expectations, estimates, assumptions and
projections that are subject to change, and actual results may differ
materially from the forward-looking statements. The expected financial
results for the third quarter 2017 are preliminary and subject to
completion of our financial closing procedures. Factors that could cause
actual results to differ materially include, but are not limited to, the
company's ability to execute on its growth and expansion strategies;
unanticipated construction delays involving the company's planned new
tissue manufacturing operations in Shelby, NC; competitive pricing
pressures for the company's products, including as a result of increased
capacity as additional manufacturing facilities are operated by the
company's competitors; customer acceptance and timing and quantity of
purchases of the company's tissue products, including the existence of
sufficient demand for and the quality of tissue produced at the
company's recently announced Shelby facility expansion when it becomes
operational; changes in the U.S. and international economies and in
general economic conditions in the regions and industries in which the
company operates; the loss of or changes in prices in regards to a
significant customer; the company's ability to successfully implement
its operational efficiencies and cost savings strategies; changes in
customer product preferences and competitors' product offerings;
manufacturing or operating disruptions, including IT system and IT
system implementation failures, equipment malfunction and damage to the
company's manufacturing facilities; changes in transportation costs and
disruptions in transportation services; changes in the cost and
availability of wood fiber and wood pulp; labor disruptions; cyclical
industry conditions; changes in costs for and availability of packaging
supplies, chemicals, energy and maintenance and repairs; environmental
liabilities or expenditures; the company's ability to realize the
expected benefits of its Manchester Industries acquisition; changes in
expenses and required contributions associated with the company's
pension plans; cyber-security risks; reliance on a limited number of
third-party suppliers for raw materials; the company's inability to
service its debt obligations; restrictions on the company's business
from debt covenants and terms; changes in laws, regulations or industry
standards affecting the company's business; and other risks and
uncertainties described from time to time in the company's public
filings with the Securities and Exchange Commission, including its
Annual Report on Form 10-K for the year ended December 31, 2016. The
forward-looking statements are made as of the date of this press release
and the company does not undertake to update any forward-looking
statements based on new developments or changes in the company's
expectations.
For additional information on Clearwater Paper, please visit our
website at www.clearwaterpaper.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171003006498/en/
Clearwater Paper Corporation
Investor Contact:
Robin S.
Yim, 509-344-5906
Vice President, Investor Relations
robin.yim@clearwaterpaper.com
or
News
Media Contact:
Matt Van Vleet, 509-344-5912
Vice
President, Public Affairs
matt.vanvleet@clearwaterpaper.com
Source: Clearwater Paper Corporation
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