Catalyst Paper posts improved EBITDA of $25.7 million in 1Q

Posted May 7, 2014
May 07, 2014. /Lesprom Network/. Catalyst Paper recorded adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $25.7 million compared to $19.1 million in 4Q 2013. Results reflect predominantly a weaker Canadian dollar, as well as higher pulp prices and improved production. Production volumes were more than 2% higher than the prior year average, as the company said in the press release received by Lesprom Network.

Sales of $273.9 million were negatively impacted by 8,000 tonnes of paper that were not shipped in the quarter due to the extended container truck driver strike at Port Metro Vancouver.

Catalyst recorded net earnings before specific items of $6.5 million in 1Q compared to $1.7 million the previous quarter. Including specific items, the net loss for the quarter was $3.8 million, the majority of which was a non-cash foreign exchange loss on long term debt, versus a net loss of $95 million for the 4Q. Prior quarter results reflected an $86.9 million non-cash impairment adjustment to the carrying value of goodwill and fixed assets.

"We are starting to see the positive impact of cost control, improved safety and productivity in our operations," said Catalyst President and CEO Joe Nemeth. "While the domestic paper market remains challenging, we continue to grow our market share in freight-logical, niche markets for coated mechanical and lightweight newsprint. Pulp markets are holding steady and as long as we keep up the strides we are making in productivity and cost control, we are well-positioned for the future."

North American paper demand fell in all the grades that the company supplies, a combination of secular declines as well as publishers and retailers entering the seasonally slower time of the year. Benchmark prices for our specialty papers declined slightly, while newsprint remained flat.

Demand for lightweight newsprint in Latin America and coated specialty papers in western North American niche markets continues to support the company's sales and marketing focus in growing market share in these product lines.

For NBSK pulp, the benchmark price increased $16 per metric tonne as supply and demand conditions continued to be positive.

Catalyst Paper manufactures diverse specialty mechanical printing papers, newsprint and pulp.

+7 499 6535608
Ordzhonikidze, 11 109028 Moscow, Russia


Topics: Finance

Comments

To like this you need to register.
To do this, enter your name and email address.
Name:
Surname:
E-mail:
Sex:
If you are already registered
please enter your details here
To leave comments you need to register.
To do this, enter your name and email address.
Name:
Surname:
E-mail:
Sex:
If you are already registered
please enter your details here
We welcome comments that advance the story through relevant opinion and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Lesprom Network. For more information on our comment policy, see: https://www.lesprom.com/legal/comment_policy/
Back to top