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Sep 30, 2021
Sylvamo Q3 2021 Earnings Report
Sylvamo released third-quarter results with strong earnings and cash flow.
Key Takeaways
Sylvamo Corporation reported strong third-quarter earnings and significant cash flow, with an adjusted EBITDA margin of 19.5%. The company is focused on generating strong free cash flow and reducing debt.
Third-quarter net income was $92 million ($2.09 per pro forma share).
Third-quarter adjusted operating earnings (non-GAAP) were $100 million ($2.27 per pro forma share).
Third-quarter adjusted EBITDA (non-GAAP) was $177 million.
Price and mix improved by $30 million versus the prior quarter and volume improved by $12 million.
Sylvamo
Sylvamo
Sylvamo Revenue by Segment
Sylvamo Revenue by Geographic Location
Forward Guidance
Sylvamo projects fourth-quarter adjusted EBITDA in the range of $140 to $150 million and adjusted operating earnings per share of $1.20 to $1.40.
Positive Outlook
- Price and mix are expected to improve by $30 to $35 million compared to the third quarter, reflecting continued realization of prior price increases.
- Volume is expected to improve by $10 to $15 million, reflecting continued strong demand in Europe and North America and seasonally stronger demand in Latin America.
- Operations are expected to increase by $15 million, reflecting seasonally higher costs in Europe and North America.
Challenges Ahead
- Input costs and distribution are projected to increase by $35 to $40 million as prices for wood, energy, chemicals and other key inputs continue to increase.
- Total maintenance outage expenses are projected to increase by $24 million, primarily the impact of a 10-year cold mill outage at our Saillat mill and an extended cold mill outage at our Eastover mill.
- We also project $8 million in costs related to transition service agreements in the quarter and $4 million of one-time costs
Revenue & Expenses
Visualization of income flow from segment revenue to net income