Resolute shares drop more than 10 per cent after earnings release

Resolute shares drop more than 10 per cent after earnings release
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MONTREAL — Shares of Resolute Forest Products Inc. are down more than 10 per cent in mid-morning trading on the Toronto Stock Exchange after the company released fourth quarter results.

The company, which reports in U.S. dollars, says it had a net income of $36 million, or 38 cents per diluted share for the quarter ending Dec. 31, compared with net income of $13 million or 14 cents per share for the same period a year earlier

Excluding special items, such as the $141-million sale of two U.S. facilities, net income was $4 million or four cents per diluted share, down from $14 million or 15 cents per share for the fourth quarter in 2017.

Resolute says it had significantly weaker lumber pricing in the last quarter, as well as operational disruptions and higher wood and energy costs.

The company’s shares were down $1.31, or 11.03 per cent, to $10.54 in mid-morning trading on the TSX.

Lumber prices have fallen steeply in recent months as the U.S. housing market shows signs of slowing after a run-up to record lumber prices last summer.

Companies in this story: (TSX:RFP)

The Canadian Press

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