MONTREAL - Resolute Forest Products, a manufacturer of lumber and paper, reported net income of $31 million for the third quarter, reversing a net loss of $44 million in the third quarter of 2011.
Resolute Forest Products' wood products division contributed $6 million in the company's total Q3 profit. That's half of the $12 million profit the company's wood product sales generated in the second quarter. Resolute Forest Products noted that continued improvements of North American housing starts helped boost the average transaction price, but shipments fell 11% from Q2 to Q3 because of a September drop in lumber shipments. In addition, the wood division experience higher log and transportation costs.
Richard Garneau, president and CEO of Resolute Forest Products, said, "We're pleased with these results, considering the specific challenges we faced in the quarter and the unexpected extent of the maintenance required to bring our recently acquired St. Felicien mill up to par," said . "Our cost-focused strategy allowed us to maintain attractive margins in the paper and wood products segments despite lower shipments overall."
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