Sylvamo's Q3 2023 net income from continuing operations was $58 million ($1.37 per diluted share) compared to $49 million ($1.14 per diluted share) in the Q2 2023.
Adjusted EBITDA (non-GAAP) was $158 million (18% margin).
Chairman and CEO Jean-Michel Ribiéras said: “Q3 earnings were higher than our outlook. We took measures to maximize free cash flow, including selling and administrative cost reductions, shrinking working capital and adjusting the timing of capital spending. We now expect free cash flow for the year to be more than $270 million.
By the end of the Q3, we returned $85 million to shareowners this year. In the Q3, we also deposited $60 million in escrow to remove cash return limits in our credit agreement. As of Nov. 9, we have returned $110 million this year and plan to return a total of $125 million in 2023.”
Q4 Outlook
- Adjusted EBITDA of $90 million to $110 million.
- Compared to the Q3:
- Price and mix are expected to decrease by $20 million to $25 million, primarily reflecting prior paper price decreases in Europe and unfavorable geographic mix in Latin America and North America.
- Volume is projected to improve by $20 million to $25 million, with seasonally stronger volume in Latin America and positive trends in North America.
- Operations and other costs are expected to increase by $25 million to $30 million due primarily to seasonally higher costs in Europe and North America.
- Input and transportation costs are projected to increase by $5 million to $10 million, mainly due to seasonally higher energy.
- Total planned maintenance outage expenses are expected to increase by $25 million.
Sylvamo Corporation is the world's paper company with mills in Europe, Latin America and North America.
