Clearwater Paper Corp (NYSE:CLW) raised its guidance for the fourth quarter. The company said it now expects adjusted EBITDA of $71 million to $76 million, versus prior forecast of $52 million to $62 million.
The company announced Monday that, due to significantly greater than expected demand in tissue, strong operating performance, and favorable cost trends, the company now expects Adjusted EBITDA for the fourth quarter of 2020 to be in the range of $71 to $76 million.
"Demand for tissue products increased significantly in November through mid-December. We believe that the recent increase in COVID-19 cases caused a temporary change in consumer buying patterns, which are starting to normalize in later December," said CEO Arsen Kitch.
"We now expect our fourth-quarter volumes to be above our previous guidance, with shipments exceeding those experienced in the fourth quarter of 2019."
Clearwater Paper is a premier supplier of private brand tissue to major retailers and wholesale distributors, including grocery, drug, mass merchants and discount stores. In addition, the company produces bleached paperboard used by quality-conscious printers and packaging converters, and offers services that include custom sheeting, slitting and cutting.
"Clearwater Paper's employees build shareholder value by developing strong relationships through quality and service."
CLW shares hiked $3.17, or 9.2%, to $37.77.
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