Resolute's sales decrease in the second quarter

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Resolute/IHB
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Resolute Forest Products Inc. reported net income for the 2Q ended June 30, 2014, excluding special items, of C$19 million up from net income, excluding special items, of C$18 million in the 2Q 2013. Resolute's sales were C$1.1 billion in the quarter, down C$16 million from the 2Q 2013, as the company said in a press release.

"Costs and margins normalized this quarter after the disappointing weather-affected 1Q, delivering much stronger performances in each of our four segments," said Richard Garneau , president and CEO. "We generated 50% of our adjusted EBITDA from our wood products and market pulp businesses in the last twelve months. Our competitive advantage rests on our cost-focused strategy and diversified asset base, giving us the tools to maximize earnings power in this challenging industry."

In the company's wood products segment, operating income rose by C$3 million, to C$15 million. The average transaction price was unchanged, reflecting the largely offsetting effect of higher market prices for stud lumber grades and lower market prices for random length lumber grades. Resolute says that despite continued distribution constraints for lack of carrier availability carried over from the first quarter, shipments were 19% higher, which in turn cut finished goods inventory by 13% from the high levels reached in the first quarter. 

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