SLVM: Sustainable Growth and Renewable Investments Sylvamo Corporation (NYSE:SLVM) , a leading global paper manufacturer, demonstrates strong financial results and an active strategy for returning capital to shareholders. In the third quarter of 2023, the company reported net income from continuing operations of $58 million or $1.37 per diluted share, significantly above the previous quarter ($49 million or $1.14 per diluted share). These results highlight the efficiency of management and Sylvamo's strategic direction towards increasing free cash flow and optimizing operational activities.
The company has also initiated the "Project Horizon" cost reduction program, aimed at achieving expense savings of at least $110 million by the end of 2024. This includes optimizing operations and reducing the global workforce by approximately 150 positions. For the fourth quarter, Sylvamo forecasts adjusted EBITDA in the range of $90 million to $110 million, reflecting expected volume improvements despite anticipated increases in operational and other expenses.
In addition, Sylvamo announced the payment of quarterly dividends of $0.30 per share and special dividends, as well as a $150 million share repurchase program. These measures underscore the company's commitment to returning value to shareholders and confidence in its financial stability and growth.
Sylvamo, with a focus on producing paper from renewable resources and operations in Europe, Latin America, and North America, strengthens its position as the preferred choice for investors interested in sustainable development and innovations in the paper industry. Considering strong financial indicators, strategic cost-cutting initiatives, and an active policy regarding shareholders, Sylvamo represents an attractive investment opportunity.
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