1Q15 Highlights * Record-high adjusted EBITDA of R$932 million (+91% vs. 1Q14) and adjusted EBITDA margin of 43.4% (+8.4 p.p. vs. 1Q14) * Increase of 84% in pulp sales volume compared to 1Q14, due to the Maranhão Unit operating at full capacity * Operations at the Imperatriz Unit contributed to an 11% reduction in cash cost from 1Q14 * Selling, general and administrative expenses (SG&A) as a ratio of net revenue of 8.5%, down from 10.9% in 1Q14 * Net loss of R$762 million due to the effects of exchange variation on the mark-to-market adjustments of the portion of debt in foreign currency, with cash effects limited to debt maturities or amortizations. * Solid financial liquidity: cash balance of R$3.9 billion
Employees at Madison Paper Industries will return to the mill early next week after a temporary shutdown that left about 110 people out of work for two weeks.
Workers will be called back to the mill beginning Monday. It will take a few days before production is back to normal, according to UPM President Russ Drechsel. The mill, owned by UPM Paper Europe & North America, has not produced paper since Jan. 24.
“We should be in full production early next week,” Drechsel said. There are no plans for future curtailments, he said.
Despite heading back to work, some employees are concerned about the future of the mill, said Mike Croteau, president of Steelworkers 36, the union that represents Madison Paper employees. He said workers were able to collect unemployment during the shutdown.
“I’ve talked to a lot of people who are nervous about it,” Croteau said. “I mean, who wouldn’t be? We haven’t normally seen these types of layoffs at Madison Paper and now, here we are, 2015, and there are layoffs. Especially when you see what happened in Bucksport, it’s scary today.”