Clearwater Paper Corporation (NYSE:CLW) Q3 2023 Earnings Call Transcript

We don’t see, you know, global demand fundamentals to drive up pulp price here in the near to medium term. Although, you know, we’ve all been wrong. But we do think our business is fundamentally in a much better place than it was a few years ago and pulp prices will do what they do.

Paul Quinn: Okay. And as your — you know, some product on the tissue side that you’re missing or that you’d love to have more of, is there, you know, just trying to — just figure out your business going forward?

Arsen Kitch: Yes, you know, Paul, we cover all quality tiers and product segments nationally. So that’s what makes us somewhat unique in this industry. You know, historically, the old trust segment has grown faster than the conventional and the value segments. Our Shelby investment placed to that and we placed a lot of those tons in the Ultra space, but I think we’re pretty well covered in terms of quality and products. What I did mention in my comments is I think in the long run what’s needed in this industry is that consolidation that is, you know, where a scale player is able to invest in the business in the long run, to add capacity, to grow low cost capacity. But I think it requires scale. We are a smaller tissue player and those investments are large and they take many years to achieve the kinds of returns that we would need to see.

So we’re not all that well positioned to make those big investments at this point, which is why we think that consolidation is needed.

Paul Quinn: All right. Got you. Thanks very much. Best of luck.

Arsen Kitch: Thanks, Paul.

Operator: There are no further questions at this time. This will conclude our conference call. Thank you for joining us today. You may now disconnect.