Fortress Paper Ltd. reported 3Q 2016 operating EBITDA of $7.6 million, an increase of $1.3 million and $2.1 million over the previous quarter and prior year comparative period, respectively.
The Dissolving Pulp Segment generated operating EBITDA of $11.9 million and the Security Paper Products Segment incurred EBITDA loss of $1.8 million. Corporate costs included in operating EBITDA were $2.5 million.
“Management is pleased to report an improved quarter of operating EBITDA compared to the prior quarter and our best consolidated operating EBITDA result since the restart of the FSC mill after its conversion to a dissolving pulp mill,” stated CEO Yvon Pelletier. “The Company’s 4Q results, as is typical, will be impacted by the annual scheduled maintenance shutdown and subsequent ramp up. Incorporating the impact of the planned shutdown, management expects fourth quarter results at the FSC mill to be lower relative to the prior quarter. Management believes the 3Q results at the Landqart mill are not representative of the future profitability of the order book. The Landqart mill incurred certain unanticipated expenses in the third quarter, as well as expenditures for investment in future sales growth that are not expected to reoccur. The Landqart mill is expected to contribute positively in the 4Q.”
Fortress Paper operates internationally in two distinct business segments: dissolving pulp and security paper products.
