SFK Pulp Fund reported 1Q loss of $1.2 million
May 13, 2010. SFK Pulp Fund's net loss for the quarter totalled $1.2 million, compared with a net loss of $15.1 million for the 1Q 2009. In the 1Q 2010 consolidated sales climbed to $138.1 million, an increase of $59.5 million compared to sales of $78.6 million in the 1Q 2009.
May 13, 2010. /Lesprom Network/. In the 1Q 2010, SFK Pulp Fund's consolidated sales climbed to $138.1 million, an increase of $59.5 million compared to sales of $78.6 million in the 1Q 2009. This increase is mainly due to higher pulp prices and favourable mix for $28.8 million as well as a higher sales volume for $57.8 million, which was partially offset by an unfavourable exchange rate for $27.1 million. The net loss for the quarter totalled $1.2 million, compared with a net loss of $15.1 million for the 1Q 2009, company said in a statement received by Lesprom Network.
SFK Pulp recorded EBITDA of $15.1 million, or 10.9% of sales, in the 1Q 2010 compared to a negative EBITDA of $2.4 million (or -3.0% of sales) for the same period in 2009.
Total sales volume rose to 187,151 tonnes in the 1Q 2010, with RBK pulp accounting for 96,547 tonnes and NBSK pulp for 90,604 tonnes. In the 1Q 2009, the sales volume totalled 108,792 tonnes, with RBK pulp accounting for 52,676 tonnes and NBSK pulp for 56,116 tonnes.
Commenting on the 1Q results, Pierre Gabriel Côté, President and CEO, said: “I am pleased to report a major improvement in our results in the 1Q 2010. Improved results were due to not only favourable market conditions, increased pulp production and higher pulp prices, but also to our cost reduction program. On the operational front, we took no market-related downtime in the 1Q 2010.”
SFK Pulp produces high-quality virgin and recycled kraft pulp, operates three mills located in Saint-Félicien, Québec, Fairmont, West Virginia, and in Menominee, Michigan.