Fortress Paper Ltd. reported a Q3 2014 EBITDA loss of $1.5 million

Nov 14, 2014. /Lesprom Network/. Fortress Paper Ltd. reported a Q3 2014 EBITDA loss of $1.5 million. Excluding Fortress Optical Features Ltd. ("Fortress Optical") operations which were sold during the quarter, EBITDA loss for the Company was $1.0 million. The Dissolving Pulp Segment generated EBITDA loss of $1.2 million and the Security Paper Products Segment generated EBITDA of $1.1 million. Corporate costs contributed $1.4 million to EBITDA loss.

EBITDA for the Dissolving Pulp Segment for the quarter ended September 30, 2014 was $3.0 million higher when compared to the second quarter of 2014, and $5.4 million higher compared to the third quarter of 2013. The company sold 37,592 air dried metric tonnes ("ADMT") of dissolving pulp and 17,607 ADMT of north bleached hardwood kraft pulp in the third quarter of 2014. Although the dissolving pulp market conditions continue to be challenging, production efficiencies and cash costs have improved during the quarter and relative to comparative periods. The Dissolving Pulp Segment continues to be affected by the antidumping duty imposed by China's Ministry of Commerce in April 2014.

The Landqart mill continues to implement new initiatives to improve efficiencies and profitability. EBITDA for the Security Paper Products Segment for the quarter ended September 30, 2014 was $1.5 million higher when compared to the second quarter of 2014, and $0.5 million lower compared to the third quarter of 2013. Less than favourable conditions, including the strength of the Swiss franc against the Euro and strong competition for orders putting pressure on pricing, continue to impact the results of the Security Paper Products Segment. The Landqart mill achieved 2,436 tonnes of security paper sales in the third quarter of 2014, compared to 1,921 tonnes of security paper sales in the second quarter of 2014.

Fortress Paper operates internationally in two distinct business segments: dissolving pulp and security paper products. The company operates its dissolving pulp business at the FSC mill located in Canada, which has expanded into the renewable energy generation sector with the construction of a cogeneration facility and the production of NBHK pulp. The Company operates its security paper products business at the Landqart Mill located in Switzerland, where it produces banknote, passport, visa and other brand protection and security papers.