RFP - Resolute Forest Products slammed by higher manufacturing freight costs
Resolute Forest Products (NYSE:RFP) plummeted 20% in Thursday's trading to its lowest in nearly three months after reporting Q4 adjusted earnings fell to $0.48/share from $0.55 a year earlier and well below $0.71 analyst consensus estimate. The company posted a $128M net loss in the quarter, compared with a $52M net loss in the year-ago quarter; Q4 sales rose 8.5% Y/Y to $834M but came in far short of $1.1B consensus, and adjusted EBITDA fell 14% to $111M vs. $134M consensus. Resolute said it suffered from higher manufacturing costs due to higher energy prices, lower internal power generation and higher fiber costs, while freight costs also rose, and current market conditions could last for "several months." Case in point: CEO Remi Lalonde said so few trucks currently are available in the Lac. St. Jean area "that if somebody is buying from us, we'll say 'I have to send it to
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Resolute Forest Products slammed by higher manufacturing, freight costs