Clearwater Paper reports 53M loss in third quarter

Clearwater Paper reported a substantial $53 million loss in the third quarter, primarily due to a non-cash impairment of goodwill stemming from last year's sale of its tissue operations to Sofidel America Corp. This figure starkly contrasts with a net income of $6 million reported during the same quarter last year. President and CEO Arsen Kitch highlighted that the oversupply of solid bleached board is adversely affecting the overall consumer paperboard market. The company aims to reduce fixed costs and maintain market share, emphasizing its high-quality assets for long-term cash flow generation. Clearwater Paper will not cut production but may implement strategic downtime to align supply with demand.

Market predictions indicate a potential net capacity reduction of 350,000 tons annually by 2026, suggesting a need for industry adjustments. Tariffs and a weakening dollar might pressure prices for over 700,000 tons of annual solid bleached board imports, pushing customers towards domestic suppliers. The company has considered altering production capabilities at its Cypress Bend facility, although plans are currently on hold.