Toilet Paper Maker Surges as Update Bolsters Investor Confidence
(Bloomberg) -- Clearwater Paper Corp., a maker of toilet paper and food packaging, surged Friday as the company reassured investors that it’s focused on keeping operations running as smoothly as possible amid a “significant increase in demand” from Covid-19 outbreak-fueled shortages.
Shares jumped following the early afternoon statement, and are up as much as 14% on the heels of its breakout rally the day prior, in which the stock gained 25%.
The Spokane, Washington-based company is focused on “ensuring continuous operations” to meet demand for essential goods, which includes paperboard used for packaging food and pharmaceutical products. Clearwater is implementing a risk mitigation plan across all facilities, a strategy that includes enhanced sanitation procedures, remote work options and travel restrictions.
The boost in the stock comes as consumers are emptying grocery shelves for staples like toilet paper and disinfectant wipes. Nielsen data show that virus-related pantry loading has spurred a 17.6% year-over-year increase in tracked-channel retail sales for toilet tissue in the four-week period ended March 7, JPMorgan analysts led by Andrea Teixeira said in a note earlier this month.
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