Shares of Sylvamo (NYSE: SLVM) tumbled 21.22% in pre-market trading on Friday following the release of its second-quarter earnings report that fell short of analysts' expectations. The paper products company reported earnings per share (EPS) of $0.37, significantly missing the consensus estimate of $0.49 and marking a steep 81.31% decline from the $1.98 per share reported in the same period last year.

Sylvamo's quarterly sales also disappointed, coming in at $794 million, which was 3.94% below the analyst consensus estimate of $826.597 million. This represents a 14.90% decrease compared to the $933 million in sales reported for the same quarter in the previous year. The company's adjusted EBITDA of $82 million also fell short of analyst estimates of $87.70 million.

The disappointing results were primarily attributed to several factors. First, the company faced its heaviest planned maintenance outages in over five years, increasing expenses by $39 million. Second, weak market demand in key regions, particularly in Europe and Latin America, negatively impacted sales volumes. Additionally, unfavorable foreign exchange movements further pressured the company's financial performance. Despite these challenges, Sylvamo remains optimistic about its future performance. The company expects a significant improvement in quarterly earnings in the second half of the year, projecting adjusted EBITDA for the third quarter to range between $145 million and $165 million. This anticipated improvement is attributed to reduced maintenance outages and seasonal volume improvements in Latin America and North America.