Mar 08, 2013. /Lesprom Network/. Catalyst Paper results in the 4Q were negatively impacted by lower sales volumes, higher maintenance spending and a stronger Canadian dollar. Catalyst posted a net loss of $35.2 million for the quarter, in contrast to net earnings of $655.7 million in the third quarter, when the one-time gains realized on emergence from creditor protection were booked. Before specific items, net losses were $15.7 million and $7.5 million in 4Q and 3Q respectively. Adjusted EBITDA was $7.2 million in 4Q, with no impact from restructuring costs, and $13.8 million in 3Q ($14 million before restructuring costs), as the company said in a press release received by Lesprom Network. Market conditions were mixed during the 4Q, with North American paper demand down from the 3Q for directory and newsprint, and up for coated and uncoated grades. Benchmark prices were up for newsprint and coated and otherwise stable for paper, while there was moderate benchmark price recovery for pulp. A market curtailment at Powell River was necessary over the holidays to balance production with orders, and Catalyst incurred a loss from discontinued operations largely due to an increased estimated pension withdrawal liability associated with the Snowflake closure. “We saw lower prices for coated and newsprint and weaker demand across our paper product lines in 2012. However, capacity reductions helped mitigate the demand impacts,” said Catalyst President and CEO Kevin J. Clarke. “Pulp prices took a hit as markets weakened in China due to overstocked inventories. These sorts of challenges aren’t going away, but with a better cost structure across all product segments, and continued market share momentum, we’re better positioned to take them on.” Net earnings of $583.2 million for 2012 were heavily impacted by one-time non-cash restructuring credits and fair value accounting adjustments. This compared with a $974 million net loss in 2011 which was driven largely by asset impairment charges. Catalyst entered creditor protection on January 31, 2012, and exited on September 13, having achieved a U$390.4 million or 60% reduction in its debt, savings in annual interest expense of US$33.9 million, and a range of other cost reductions. The restructuring included the permanent closure of its Snowflake mill at the end of the third quarter. Results from this discontinued operation are excluded from those being reported, with comparative periods having been restated accordingly. Before specific items – which also included restructuring-related fees, closure costs at Snowflake, and a foreign exchange gain on translation of US dollar-denominated debt – Catalyst posted a net loss of $37.8 million ($2.62 per common share), in contrast to a net loss of $126.3 million in 2011 ($0.33 per common share). Total sales were $1,058.2 million, slightly below $1,079.7 million in 2011. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $55.4 million for 2012 ($60.7 million before specific items), down from $62.8 million for 2011 ($68.7 million before specific items). A significant drop in pulp transaction prices and lower average paper transaction prices were only partially offset by cost reductions, higher sales volumes and favourable currency impacts. 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 three mills, located in British Columbia, Catalyst has a combined annual production capacity of 1.5 million tonnes.