May 19, 2011. /Lesprom Network/. Fibrek Inc. has posted a net profit in its 1Q of $3.457 million. This can be compared to the net loss of $1.7 million the company reported in the 1Q 2010, as ForestTalk reported. Commenting on these results, Pierre Gabriel Côté, President and CEO, indicated: “Prices in the NBSK pulp market were up from 2010 high closing levels, and were up 10% over the 1Q of last year. These increases enabled us to improve our NBSK EBITDA margin to almost 21% from 17% last year, even while facing a currency headwind. However, the gains of the NBSK segment were offset by the decline in the RBK segment performance, as these market conditions remained very challenging. While we are taking a variety of actions to address these issues, a number of initiatives are not short-term in nature and thus will take some time for results to be evident. Meanwhile, we continue to deleverage our capital structure, further strengthening our balance sheet and positioning ourselves to take advantage of future opportunities.” “The NBSK pulp market remained tight throughout the 1Q and fundamentals continue to be favourable, with global softwood inventories at 24 days and increased downtime just ahead as we approach the heavy upcoming spring maintenance season. At our Saint-Félicien mill, a four day unscheduled shutdown was required in April to repair a leaking tube at the recovery boiler. We took this opportunity to perform minor maintenance, thus eliminating the need for our usual spring shutdown.” “The RBK pulp markets continue to be negatively impacted by peaking wastepaper prices and low prices in the hardwood kraft pulp market. We continue to focus on increasing margins of the RBK business through product development, improving the sales mix and increasing the amount of cost-plus business.” “Prevailing raw material market conditions are pressuring our input costs, however, good demand for both our virgin and recycled pulps supports a strong pricing environment,” said Pierre Gabriel Côté. 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.