Clearwater Paper Co. posts profit

Clearwater Paper’s financial performance has rebounded, with the company earning money early this year after losing $144 million in 2018.

The paperboard and tissue manufacturer, which is one of Lewiston’s largest employers, made a combined $3.8 million for the months of January, February and March, according to results reported Wednesday.

“Both the paperboard and consumer businesses executed well and delivered solid results in the first quarter,” said company President and CEO Linda Massman in a conference call for stock market analysts after the report was released.

“While paperboard was mostly responsible for the financial contribution, our consumer business continues to show improvement from both improved tissue prices and higher shipped volumes of converted retail tissue,” she said.

As Clearwater Paper executives focus on increasing profits, they’re continuing to make progress on two capital projects.

In Lewiston, Clearwater Paper employees are preparing to introduce by the end of the year a new catalyst in a polysulfide reactor. The change is expected to allow the company to gain $30 million in annual savings from a $160 million upgrade that debuted in 2017 and features a continuous pulp digester.

The project is providing savings, but only $10 million a year because of issues with a process that converts sodium sulfide into polysulfide, a chemical compound that protects chips from degradation. The equipment boosts the amount of fiber Clearwater Paper obtains from each wood chip.

Production also started in recent weeks of a $420 million expansion at the company’s Shelby, N.C., plant.

“This investment allows us to grow with our customers and helps in the development and expansion of their private brand programs,” Massman said of new equipment that will produce a variety of tissue grades.

The gains in the early part of of this year follow 2018 when Clearwater Paper encountered challenges on a number of fronts. Among those challenges was a decision to cut expenses by $20 million a year by eliminating an unspecified number of positions in areas such as finance, information technology, human resources, sales and marketing. The jobs were at Clearwater Paper’s corporate headquarters in Spokane and elsewhere.

While the goal of that initiative was to reduce payroll, Clearwater Paper spent money on one-time expenses such as severance pay.

Williams may be contacted at ewilliam@lmtribune.com or (208) 848-2261.