Consolidated sales for the three-month period ended December 27, 2014, were $332 million, as compared to $354 million in the same quarter a year ago. The Company generated a net loss of $62 million or $0.62 per share in the December 2014 quarter compared to net earnings of $2 million or $0.02 per share in the December 2013 quarter. The current quarter results include a non-recurring debt refinancing charge of $37 million and a non-cash loss of $17 million related to the translation of US dollar denominated debt. Operating earnings before depreciation, amortization and other items (adjusted EBITDA) was $20 million for the three-month period ended December 27, 2014, as compared to adjusted EBITDA of $13 million a year ago and adjusted EBITDA of $29 million in the prior quarter.
Iggesund Paperboard, a subsidiary within the Holmen group, is currently implementing efficiency measures to secure an efficient business and safeguard the long-term profitability of Iggesund Mill. The redundancies are part of an efficiency package aimed at improving production capacity and reducing costs.
Local negotiations with the affected employee organisations will now begin with a view to completing the cutback in personnel before the end of the year.
We have a strong position in the global paperboard market, but we need to work proactively to maintain our competitiveness. With this in mind, we are preparing to increase production capacity by around 100 000 tonnes and will now also be conducting a review of the organisation in order to ensure efficient operations and long-term profitability at Iggesund Mill, says Daniel Peltonen, CEO of Iggesund Paperboard.