Catalyst Paper reports losses in 2013 Q1
May 6, 2013, Richmond, B.C. – Catalyst Paper posted a net loss of $9.8 million ($0.89 per common share) in the first quarter of 2013. The loss was $11.6 million before specific items.
Improvement over the final quarter of 2012 – when the company recorded a loss of $35.2 million ($1.55 per common share) and $15.7 million before specific items – was driven by increased prices for pulp, and lower maintenance costs.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) in the first quarter were $11.2 million, up from $7.2 million in the final quarter of 2012. Adjusted EBITDA was not impacted by restructuring costs in either quarter.
Benchmark prices and North American demand were down for all paper grades. Demand for lightweight coated declined by 5.3 per cent while remaining flat for uncoated mechanical. Directory demand was down 15.3 per cent and newsprint demand fell by 10.2 per cent. Catalyst's newsprint sales volumes were up over a year ago in part due to customer interest in Marathon Lite, while sales volumes for specialty grades declined in the quarter. Lower sales volumes for paper were partly due to a production shortfall resulting from certain unforeseen maintenance events in the quarter.
The current outlook for global growth has improved, reflecting modest recovery in China and the United States during the first quarter. The Canadian dollar is expected to weaken slightly going forward.
For the full report visit, www.catalystpaper.com.
May 7, 2013 By Catalyst Paper Corporation
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