Resolute Reports Preliminary Q1 2013 Segment Breakdowns

Newsprint
The newsprint segment reported an operating loss of $2 million in the first quarter, compared to operating income of $18 million in the fourth quarter of 2012. Average transaction price was down $17 per metric ton as a result of capacity pressure within North America. Overall shipments were down 6 percent in the seasonally slower quarter, but export volume rose to 46 percent of total shipments, compared to 37 percent in the fourth quarter, as a result of a gradual improvement in overseas markets. Finished goods inventory was 20,000 metric tons higher at the end of the quarter. Operating costs per unit rose 3 percent as a result of the lower volume, higher steam costs because of higher natural gas prices and seasonally higher consumption, and the timing of payroll benefits. The company expects to restart its lower-cost Gatineau, Quebec, facility in early May to offset the recent machine closure at its Calhoun, TN, mill.

Coated Papers
The coated segment generated an operating loss of $3 million during the quarter, compared to operating income of $3 million in the previous quarter. Shipments rose 6 percent from the fourth quarter, in which the company experienced equipment failures at the Catawba mill. Average transaction price was unchanged but operating costs rose $40 per short ton owing to the mill's annual outage.