Posted on 05/05/2016 7:08:57 AM PDT by rickmichaels
MONTREAL – Resolute Forest Products says it’s permanently shutting down one of its U.S. newsprint machines in response to ongoing challenges in the market.
The Montreal-based pulp, paper and lumber producer says its U.S. mills are “especially vulnerable” in the present currency environment, when a strong American dollar weakens their competitive position.
Resolute (TSX:RFP) recently announced price increases to its newsprint sales in the United States but doesn’t expect long-term demand to improve, unlike an anticipated recovery in demand for lumber for the U.S. housing market.
The company says it anticipates a $20 million expense item will be recorded for the machine shutdown at its newsprint mill in Augusta, Ga., which will be recorded in the second and third quarters of 2016.
It also announced a loss of US$8 million, or nine cents per share, in the first quarter ended March 31. — an improvement from a loss of US$33 million or 35 cents per share in the first quarter of 2015. Sales fell to $877 million from $920 million, but the impact was offset by the positive impact of a weak Canadian dollar and lower expenses.
Excluding special items, Resolute had an $18 million loss in the first quarter or 20 cents per share — little-changed from a year earlier.
The print newspaper around me are all liberal. Why would I pay for that?
Just bought a ream of printer paper, and was amazed at how much a 500 sheet ream costs now.
Makes sense. Number of newspapers is down, page count at surviving papers is down, and circulation is way down.
Strong dollar makes our exports less competitive, especially with many EU banks offering negative interest rates at the reserve level.
Staples always has a deal and I get a ream for 1 cent....limit 4.
We use a lot of paper in our office operation and found that our local price has almost doubled over the last six months. One of our clients told us that Office Depot was running a special of buy one, get one free so took advantage of it, even though we don’t buy from Office Depot any more. Paper is so thin that it won’t feed through printer. Tried to return unused cases minus the one ream we had opened and they would not take it back. So we now have a huge supply of scratch paper!
They seem to be about 98% Communist.
You can hardly find one that doesn't print the Climate Change lies.
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