For the fourth quarter of 2017, total revenue increased by $4.1 million, or 12.9%, to $35.4 million from $31.4 million for the same period of the prior year. The increase in total revenue was mainly due to increase in ASP and partially offset by decreases in sales volume across all product categories. Production of tissue paper was suspended in September and October for the replacement of coal boilers, and began intermittent production in the following months. In addition, we decreased the production volume of regular CMP, light-Weight CMP and offset printing paper and sales of these products due to environmental conditions in Northern China. Total gross profit decreased by $3.9 million, or 52.1%, to $3.6 million for the fourth quarter of 2017, from $7.5 million for the same period of the prior year. Overall gross margin was 10.2% for the fourth quarter of 2017, compared to 24.0% for the same period of the prior year. Gross margins for regular CMP, light-weight CMP, offset printing paper, and tissue paper products were 8.9%, 10.0%, 16.5%, and 5.8%, respectively, for the fourth quarter of 2017, compared to 23.2%, 28.8%, 25.1%, and 11.0%, respectively, for the same period of the prior year. Click Read More below for additional information.
The American Forest & Paper Association (AF&PA) President and CEO Heidi Brock issued the following statement regarding an affirmative and preliminary ruling in a circumvention inquiry, involving uncoated paper sheeter rolls from China on existing antidumping duty (AD) and countervailing duty (CVD) orders.
“AF&PA supports the enforcement of free and fair trade laws. The U.S. Department of Commerce’s preliminary ruling in a circumvention inquiry into uncoated paper sheeter rolls from China is a positive step to ensure the U.S. paper industry operates according to fair trade principles in a highly competitive global market.
“This preliminary ruling is based on an impartial, transparent process that abides by international rules and a set of facts and evidence. AF&PA believes U.S. government enforcement of domestic and international trade rules will help safeguard the health of the U.S. paper industry, allowing markets to function properly.”
Additional Background: A circumvention inquiry can occur under United States law when evidence suggests that goods subject to an antidumping duty (AD) or countervailing duty (CVD) order is completed or assembled in the U.S. from parts and components imported from the country subject to AD/CVD orders, and the process of assembly or completion in the U.S. is minor.