Nov 14, 2011. /Lesprom Network/. Catalyst Paper posted a net loss of $205.7 million on sales of $340.3 million during the 3Q 2011. The net loss was largely due to a $151.0 million impairment charge on the company’s Snowflake facility. The 3Q net loss compared with a 2Q net loss of $47.4 million on sales of $297.8 million. Operating results for the 3Q improved over the prior quarter, driven by higher sales volumes and paper prices, productivity gains and a lower Canadian dollar. “We regained momentum this quarter in productivity and operating rates,” said President and CEO Kevin J. Clarke. “And our strong safety focus helped reduce lost time injuries. Unfortunately, these improvements were overshadowed by the magnitude of the impairment charge at Snowflake, which makes very clear the relentless pressures on our industry.” Before the impairment charge and other specific items, Catalyst had a net loss for the 3Q of $14.1 million, in contrast to a net loss before specific items of $46.9 million in the 2Q. The other significant specific item during the third quarter was a foreign exchange loss on the translation of U.S.-dollar denominated debt. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $26.8 million in the 3Q. This was an improvement from negative EBITDA of $3.9 million in the 2Q. There were no re-structuring costs in either quarter. The benefits of higher EBITDA were however more than offset by the Snowflake-related impairment charge, and resulted in a 3Q operating loss of $151.6 million, compared to an operating loss of $30.6 million in the 2Q. 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 1.9 million tonnes.