May 09, 2012. /Lesprom Network/. Fibrek Inc. announced its results for the 1Q ended March 31, 2012, in accordance with the International Financial Reporting Standard (IFRS). All dollar amounts are expressed in Canadian dollars unless otherwise stated, as the company said in a press release received by Lesprom Network. In the 1Q 2012, consolidated sales reached $122.1 million, a decrease of $10 million when compared with sales of $132.1 million in the 1Q 2011. This reduction is mainly attributable to lower pulp prices and an unfavourable sales mix for $20.4 million, which was partially offset by a higher sales volume for $8.5 million and a favourable exchange rate for $1.9 million. Cost of products sold totalled $109.9 million in the 1Q 2012, an increase of $6.9 million when compared with the corresponding period of 2011. This increase is primarily due to a higher sales volume for $7.6 million and the impact of the exchange rate on US operating costs for $0.9 million, which were partially offset by lower cost per tonne for $1.6 million, mainly due to reduced wastepaper prices. Selling and administrative expenses in the 1Q 2012 totalled $10.9 million, compared with $3.3 million in the corresponding period of 2011. This increase is primarily attributable to higher consulting fees related to efforts expended by Fibrek to seek out value maximizing alternatives to the unsolicited insider bid (the “Insider Bid”) from Abitibi (as hereinafter defined) for a total of $7.7 million. As a result, EBITDA for the 1Q 2012 was negative $11.2 million (negative 9.1% of sales), compared to positive $15.8 million (11.9% of sales) for the corresponding period of 2011. Financial expenses decreased from $3.5 million in the 1Q 2011 to $2.6 million in the 1Q 2012. This $0.9 million reduction results mainly from a lower debt level due to the redemption of the debentures, thereby reducing interest for the 1Q 2012. A net loss of $23.2 million was recorded in the 1Q 2012, compared with net earnings of $3.5 million in the corresponding period of 2011. The net loss per share amounted to $0.18 (basic and diluted) in the 1Q 2012, compared with net earnings per share of $0.03 (basic and diluted) in the corresponding period of 2011. Fibrek is a leading producer and marketer of high-quality virgin and recycled kraft pulp. The company operates three mills located in Saint-Félicien, Québec, Fairmont, West Virginia, and in Menominee, Michigan with a combined annual production capacity of 760,000 tonnes.