Sylvamo Corporation reported strong financial performance for the third quarter and the first nine months of 2024, with net sales reaching $965 million for the three months ended September 30, 2024, compared to $897 million for the same period in 2023. For the nine months ended September 30, 2024, net sales totaled $2,803 million, up from $2,757 million in the prior year. The increase in revenue was driven by higher sales volumes, particularly in North America, where net sales rose to $532 million in Q3 2024 from $476 million in Q3 2023.

Profitability also improved significantly, with net income for Q3 2024 at $95 million, a substantial increase from $58 million in Q3 2023. For the nine-month period, net income rose to $221 million from $204 million year-over-year. Basic earnings per share for Q3 2024 were $2.32, up from $1.39 in Q3 2023, while diluted earnings per share increased to $2.27 from $1.37.

The company’s comprehensive income for Q3 2024 was reported at $121 million, compared to just $8 million in the same quarter of 2023. However, comprehensive income for the nine months decreased to $106 million from $244 million in the previous year, reflecting fluctuations in foreign exchange and other factors.

Sylvamo's cash and temporary investments increased to $248 million as of September 30, 2024, up from $220 million at the end of 2023. Total current assets also rose to $1,229 million, compared to $1,193 million at the end of 2023. The company reported total current liabilities of $714.7 million and retained earnings increased to $2,393 million from $2,222 million.

Strategically, Sylvamo completed the acquisition of Stora Enso’s uncoated freesheet paper mill in Nymölla, Sweden, for approximately $167 million in January 2023. This acquisition has been integrated into Sylvamo’s financials since the acquisition date, contributing to the company’s operational capacity.

In terms of operational challenges, Sylvamo noted that input and transportation costs increased slightly, with higher fiber costs in Latin America offsetting lower energy and transportation costs in North America. The company anticipates unfavorable price and mix conditions in Q4 2024 due to pulp and paper price decreases in Europe and a less favorable customer mix in North America.

Additionally, Sylvamo is managing a Brazil tax dispute involving significant assessments, with a favorable ruling issued in October 2024, although it remains subject to appeal. The company has also refinanced its debt portfolio, including a new senior secured term loan facility, which is expected to enhance its financial flexibility moving forward.