Clearwater Paper reported third quarter income of $16.5 million, not counting another nearly $30 million it earned through federal tax credits for use of alternative fuels during the same three-month period.
The company’s Consumer Products segment continues to be buoyed by the soft economy fueling demand for its supermarket label products that cost less than name brands, as the segment shipped a record 52,778 tons of finished goods during the quarter. It had an operating income of $32.1 million, compared with $11.1 million for the same time last year.
Pulp and Paperboard had operating income of $57.7 million – all but $10.6 million came from tax credits Clearwater Paper receives for using black liquor to create steam and electricity at its Lewiston and Cypress Bend, Ark., mills. The tax credits are scheduled to expire at the end of the year.
Wood Products, the segment hit hardest by the downturn in the economy, lost $4.2 million in the third quarter, compared with a loss of $1.6 million in the third quarter of 2008.
