Reports out of Chetwynd, B.C. suggest that the town’s idled pulp and paper mill is about to restart. According to a story in Business in Vancouver, Paper Excellence plans to reopen the mill as early as May 1st. The former Tembec mill has been shut down since September of 2012. The report was unconfirmed by Paper Excellence, but officials for the union representing mill workers confirmed that the company is working towards restarting the mill.
* Revenue for the third quarter of fiscal year 2015 was $339.9 million, a 19 percent increase compared to revenue of $286.2 million reported in the same quarter a year ago. The year-over-year strengthening of the U.S. Dollar has negatively impacted the U.S. Dollar value of our revenues generated from countries other than the United States. Excluding the estimated impact from currency exchange rate fluctuations and revenue from businesses acquired during the past twelve months, total revenue grew 11 percent year over year in the third quarter, in line with our expectations. * Gross margin (revenue minus the cost of revenue as a percent of total revenue) in the third quarter was 63.1 percent, down from 64.7 percent in the same quarter a year ago. The year-over-year reduction in gross margin was primarily due to the mix effect of our acquisitions of Printdeal and Pixartprinting, which have lower gross margins than our Vistaprint-branded business. Excluding the businesses we acquired during the past twelve months, our gross margin increased moderately year over year driven by efficiency gains and currency fluctuations.
Polaris Direct, a nationally acclaimed direct marketing services provider and print company, is the first in the United States to install the new Xerox Impika Evolution inkjet press. With a focus on the future, and expertise in creating high-volume personalized communications, Polaris Direct sees now as the time to invest in the latest technology changing the dynamic of one-to-one marketing campaigns. “Data driven technology like the Evolution can bring personalized messaging with greater efficiencies and scale to our clients,” said Judith Maloy, Polaris Direct, director and CEO. The Xerox Impika Evolution has run speeds of 832 feet per minute and VHQ print with up to 600×1,200 dpi. It produces quality variable data four-color mailings at high-speeds and volume.
Net sales of $2,456 million for the second quarter of fiscal 2015 increased $62 million compared to the second quarter of fiscal 2014 as a result of sales from the Tacoma Mill acquisition completed in fiscal 2014 and higher corrugated volumes. Segment income of $222 million for the second quarter of fiscal 2015 increased $20 million compared to the prior year quarter. The increase in segment income was primarily due to the achievement of an estimated $22 million in productivity improvements, lower fiber and energy prices, less weather disruption than in the prior year quarter and higher corrugated volumes which were partially offset by decreased corrugated selling prices, lower merchandising displays income and other costs across our business.
Domtar Corporation (NYSE: UFS) (TSX: UFS) today reported net earnings of $36 million ($0.56 per share) for the first quarter of 2015 compared to net earnings of $71 million ($1.10 per share) for the fourth quarter of 2014 and net earnings of $39 million ($0.60 per share) for the first quarter of 2014. Sales for the first quarter of 2015 were $1.3 billion. Operating income before items1 was $90 million in the first quarter of 2015 compared to an operating income before items1 of $115 million in the fourth quarter of 2014. Depreciation and amortization totaled $90 million in the first quarter of 2015. The decrease in operating income before items1 in the first quarter of 2015 was the result of lower average selling prices for paper and pulp, higher raw materials costs and higher other costs.