Clearwater Paper says hurricanes contributed to flat 3Q earnings

Clearwater Paper Corp. reported a drop in sales and flat income during the third quarter, citing higher transportation costs from hurricanes in the Southeast as a contributing factor.

The Spokane-based company reported sales of $426.5 million during the quarter, a 2 percent drop from $435.3 million during the third quarter of 2016.

Net income was $900,000, or 5 cents per share, which was identical to the third quarter of 2016.

Clearwater Paper manufactures toilet paper and other tissue products, pulp and paperboard.

Linda K. Massman, Clearwater’s president and chief executive, attributed the flat earnings to several factors. In addition to the hurricane-related increase in transportation costs, the company had some major maintenance repairs during the quarter and pulp prices were higher than expected, she said.

Clearwater has been working on operations efficiencies to reduce expenses, Massman said. Automation projects are underway at several company facilities, lowering wage and benefits expenses, she said.

Clearwater also shut down two of its higher-cost tissue machines at its Neenah, Wisconsin, mill and closed its Oklahoma City facility.