Fortress Paper Ltd. reported 1Q 2016 operating EBITDA of $1.1 million. The Dissolving Pulp Segment generated operating EBITDA of $1.3 million and the Security Paper Products Segment generated EBITDA of $1.8 million. Corporate costs included in operating EBITDA were $2 million, as the company said in the press release received by Lesprom Network.
"Management reports another quarter of positive operating EBITDA," stated Yvon Pelletier, CEO. "Operating EBITDA for the 1Q 2016 was $1.1 million, a $3.6 million improvement from the operating EBITDA loss of $2.5 million for the prior year comparative quarter. The Dissolving Pulp Segment continued to generate positive operating EBITDA during the 1Q 2016, a result of improved pricing for dissolving pulp, continued stable electricity generation and favorable foreign exchange rates on sales. However, the FSC mill efficiency was below management's objective.
“We believe the dissolving pulp market outlook for 2016 will continue to be positive. Management continues to focus on cost reductions, production and power generation to improve margins at the FSC mill. In the Security Paper Products Segment, our proprietary banknote substrate, Durasafe®, achieved notable milestones with the announcement of the release into circulation of the 50 Swiss Franc produced on Durasafe® and a regional banknote of the year award for the Kazakhstan 20,000 Tenge banknote produced on Durasafe® paper. The Segment continues to build on a strong order book for 2016 and 2017."
Fortress Paper operates internationally in two distinct business segments: dissolving pulp and security paper products.
