Mar 01, 2012. /Lesprom Network/. Catalyst Paper posted a net loss of $974 million in 2011 due in large part to asset impairments on Canadian and Arizona-based operations, as the company said in a press release received by Lesprom Network. Other factors contributing to the loss were capital restructuring costs, a foreign exchange loss on the translation of U.S. dollar denominated debt and fire-related outages at the Snowflake and Powell River mills. The company's net loss in 2010 was $396.9 million. "We faced formidable economic and currency headwinds through 2011 made worse by the 4Q drop-off in pulp prices and a weaker five-year paper and pulp industry forecast released in February 2012. These combined factors triggered the requirement to take a $660.2 million impairment charge on Canadian operations," said Catalyst President & CEO Kevin J. Clarke. Sales in 2011 of $1,261.5 million were up over sales of $1,228.6 million in 2010 as pricing momentum helped mitigate the effect of the strong Canadian dollar. The company's net loss before specific items of $126.3 million widened in 2011 compared with a 2010 net loss before specific items of $87 million. EBITDA of $41.6 million ($47.5 million before restructuring costs) in 2011 was down from $46.3 million in 2010 ($71.6 million before restructuring costs). Significant factors impacting EBITDA in 2010 included impairment and other closure costs related to Elk Falls and the paper recycling operation, an unfavorable tax adjustment and a foreign exchange gain on translation of U.S. dollar denominated debt. "North American paper markets and world pulp markets weakened in the last quarter of 2011 and higher inventory levels carried forward into 2012 for most paper grades as production curtailments failed to balance the migration away from print to digital media by retailers and publishers. We expect little if any improvement over the short-term in what are persistently difficult markets," said President and CEO Kevin J. Clarke. "With a challenging debt load, cash constraints and difficult trade credit terms to contend with, filing for creditor protection became inevitable when a consensual recapitalization agreement with noteholders could not reached by January 31, 2012." During the 4Q 2011, Catalyst posted a net loss of $708 million compared with a net loss of $205.7 million in the 3Q. Before specific items, net loss of $41.7 million compared to a net loss in the 3Q of $14.1 million. EBITDA for 4Q was $2.8 million and $8.7 million before restructuring costs, while EBITDA in 3Q was $26.8 million unchanged before specific items. Catalyst Paper manufactures diverse specialty mechanical printing papers, newsprint and pulp. Its customers include retailers, publishers and commercial printers in North America, Latin America, the Pacific Rim and Europe. With four mills, located in British Columbia and Arizona, Catalyst has a combined annual production capacity of 1.8 million tonnes.