Amit Prasad

Amit Prasad asked about potential risks to fiber costs in Georgia and North Carolina, specifically concerning reduced pulpwood salvage harvest. He also sought clarification on the expected cadence of the $20 million working capital improvements throughout the year.

Answer

Sherri Baker, Senior Vice President and CFO, confirmed that no fiber cost risks have been identified, and the company feels well-positioned. Arsen Kitch, President and CEO, added that overall inflation is expected at 2-3% (labor, chemicals, wood, transportation), but productivity and carryover should offset $20 million-$30 million of this inflation. Ms. Baker further clarified that the $20 million working capital improvement would be heavily weighted towards the back half of the year.

Amit Prasad inquired about potential risks to fiber input costs in Georgia and North Carolina, specifically concerning reduced pulpwood salvage harvest, and sought clarification on the cadence of the projected $20 million working capital improvement.

Answer

CFO Sherri Baker confirmed no identified risk to fiber costs, stating the company is in good shape. President and CEO Arsen Kitch added that expected 2-3% inflation (labor, chemicals, wood, transportation) should be offset by productivity. Sherri Baker clarified that the $20 million working capital improvement would be heavily weighted towards the back half of the year.