Sylvamo's stock plummeted 5.70% during intraday trading on Friday, following the release of its first-quarter financial results.
The paper producer reported a disappointing quarter, swinging to a net loss of $3 million. Key profitability metrics fell short of analyst expectations, with adjusted EBITDA of $29 million missing the consensus estimate of $37.4 million. The company also reported a significant adjusted loss per share of $0.53, which was nearly double the anticipated loss of $0.28.
Management cited several headwinds impacting results, including higher operating costs for energy, chemicals, diesel, and ocean freight linked to the Middle East conflict, which are expected to persist. The quarter was also affected by capacity constraints following the termination of a supply agreement and an upcoming mill outage. These factors contributed to a negative free cash flow of $59 million for the period.
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