Q1 2024 Sylvamo Corp Earnings Call Transcript
Key Points
- Sylvamo Corp reported improved uncoated freesheet and pulp conditions, leading to a fuller order book and less economic downtime.
- The company is on track with Project Horizon, aiming for $110 million in savings by year-end, enhancing cost efficiency across manufacturing and supply chain operations.
- Sylvamo Corp returned substantial cash to shareholders, with $12 million distributed in dividends and $20 million in share repurchases in the first quarter.
- Adjusted EBITDA for the quarter was $118 million, within the forecasted range, supported by better-than-expected price and mix improvements.
- The company has identified an additional $200 million in high-return capital projects, expected to bolster future earnings and cash flow.
- Free cash flow in the first quarter was lower than the previous quarter due to timing of year-end payments and other compensations.
- Volume decreased by $12 million, driven by seasonally weaker demand in Latin America.
- Input and transportation costs increased by $9 million, impacting overall cost efficiency.
- Planned maintenance outages are projected to increase costs by $3 million in the upcoming quarter.
- The company faces ongoing challenges with elevated wood fiber costs in Sweden and Brazil, impacting material expenses.
Good morning. Thank you for standing by, and welcome to Sylvamo's first quarter 2024 earnings call. (Operator Instructions) As a reminder, your conference is being recorded. I would now like to turn the call over to Hans Bjrokman, Vice President, Investor Relations. Sir, the floor is yours.
Thanks Liya. Good morning and thank you for joining our first quarter 2024 earnings call. Our speakers this morning are John Michel Ribieras, Chairman and Chief Executive Officer and John Sims, Senior Vice President and Chief Financial Officer.
Slides 2 and 3 contain important information, including certain legal disclaimers. For example, during this call, we will make forward-looking statements that are subject to risks and uncertainties. We will also present certain non-US GAAP financial information. Reconciliations of those figures to US GAAP financial measures are available in the appendix. Our website also contains copies of the earnings release as well as today's presentation. With that, I'll turn the call over to Jean
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