Net sales decreased $12.4 million, or 26%, primarily due to heavy promotional activity by brand-competitors and other competitive pressures. Parent roll sales were $2.5 million in both quarters, and converted product sales decreased $12.4 million to $32.9 million. $10.2 million of the decrease in revenue was attributable to the decreased number of tons sold, and $2.2 million was attributable to a decline in the average price per ton that reflects a changing mix of customers buying a changing mix of products. Cost of sales, exclusive of depreciation, decreased $3.6 million, or 11%. Tons sold decreased by 20% leading to a decrease of $7.0 million in cost of sales; however, the average cost per unit increased 9%, offsetting $3.4 million of this decrease. The addition of labor, overhead, and start-up costs for Barnwell, not yet being offset by production and absorption, account for the largest portion of the relative cost increase. A net loss of $0.9 million, or ($0.08) per basic share, was recognized in the first quarter of 2017 compared to net income of $5.4 million, or $0.53 per basic share, in the first quarter of 2016. click Read More below for additional detail
Catalyst Paper is announcing the March 1st, 2020 temporary curtailment of our Crofton paper operations, located on Vancouver Island, British Columbia, due to a shortage of available forest fibre. We are relieved that the eight month long Western Forest Products strike has just been settled. However, the labour dispute had significant impact on our fibre supply chain. Despite our considerable efforts to find economic alternative sources of fibre, all supplies have been exhausted and we are forced to curtail operations until the fibre stream is re-established. We currently anticipate a Crofton paper restart date of March 30, 2020.
Catalyst prides itself on product excellence and customer service. Our Powell River and Port Alberni facilities will continue to operate during this period and both mills will be able to fulfill your orders.
We very much appreciate your support and continued business during this unpreceded interruption.