MONTREAL -- Shares of Resolute Forest Products Inc. (RFP.TO) dipped to a 21-month low Thursday after it reported that net income was chopped by nearly two-thirds in the second quarter.
The Montreal-based company says its net profit attributable to shareholders was $25 million or 27 cents per diluted share, down from $72 million or 77 cents per share a year earlier.
Revenues for the period ended June 30 were $755 million, down 22.6 per cent from $976 million in the prior year when sales from two U.S. plants were included before being sold later in the year.
Adjusted profits fell to 12 cents per share compared with 71 cents per share in the second quarter of 2018.
Resolute was expected to earn 14 cents per share on $851 million in revenues, according to financial markets data firm Refinitiv.
The company said overall pricing was $68 million weaker as lumber prices decreased by 32 per cent while manufacturing costs increased and sales volumes were cut from lower pulp and newsprint shipments.
"Relative to our forecasts, lower-than-expected results from pulp and newsprint more than offset the better-than-expected specialty papers result," wrote Paul Quinn of RBC Capital Markets in a report.
Resolute's shares lost 12 cents or 1.49 to $7.96 in early afternoon trading on the Toronto Stock Exchange.
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