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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
Revenue by Segment
Europe Revenue
CapyFin.comLatin America Revenue
CapyFin.comNorth America Revenue
CapyFin.comRevenue by Geographic Location
Europe Revenue
CapyFin.comLatin America Revenue
CapyFin.comNorth America Revenue
CapyFin.com 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