Resolute Forest Products Inc. (NYSE:RFP) is a $1.5 billion market cap global forest products company that owns or operates pulp and paper mills and wood products facilities in the United States, Canada and South Korea. Its segments include newsprint, coated papers, specialty papers, market pulp and wood products. The company’s net income dropped to $17 million, or $0.18 per share, from $29 million, or $0.31 per share, in the same quarter of 2013. The company collected $1.1 billion in sales in the third quarter, representing a drop of $34 million, as compared to the same quarter of 2013.
Shares of Resolute Forest Products (NYSE:RFP) traded up 0.85% on Tuesday, to $16.61. The stock moved up 0.48% during the last six months. However, the stock shows a year-to-date performance of -5.86%. The consensus average target price for the stock is $19.31, while the consensus average recommendation is ‘HOLD.’
Last month, Resolute Forest Products Inc. (NYSE:RFP) announced that it is closing 465,000 metric tons of newsprint production capacity in Canada. According to the company, its decision to reduce newsprint capacity is a result of the ongoing weakness in the global newsprint business, exacerbated by fiber-related issues, including both availability and costs, as well as transportation challenges. The company’s plans are to close the Iroquois Falls (Ontario) newsprint mill, as well as paper machine #1 at Baie-Comeau (Quebec) and paper machine #4 at Clermont. The Iroquois Falls mill employs approximately 180 people and has an annual production capacity of 210,000 metric tons of newsprint. The paper in Clermont will be permanently closed on or about January 30, 2015. The closures at Baie-Comeau and Clermont will result in the loss of approximately 120 positions and the permanent removal of approximately 255,000 metric tons of newsprint capacity.
In its latest 13F, Fairfax Financial Holdings, led by Prem Watsa, disclosed holding 29.04 million shares of Resolute Forest Products (NYSE:RFP). Chou Associates Management, managed by Francis Chou, disclosed ownership of around 4.12 million shares of the company, the stake remained unchanged over the quarter. Another investor, Contrarian Capital, run by Jon Bauer, reported holding 837,621 shares of Resolute Forest Products (NYSE:RFP), according to our records.