Mercer International Inc. Reports 2017 Second Quarter Results

Mercer International Inc. (Nasdaq: MERC, TSX: MERC.U) today reported results for the second quarter ended June 30, 2017. Operating EBITDA* in the second quarter of 2017 increased by approximately 13% to $39.1 million from $34.7 million in the same quarter of 2016 but declined from $60.2 million in the prior quarter. In the current quarter, strong operating performance was partially offset by a large planned maintenance shut along with foreign exchange losses on foreign currency balances. In the current quarter, we had 22 days of annual maintenance downtime at our pulp mills compared to 21 days in the comparative quarter and no such downtime in the prior quarter of 2017.

For the second quarter of 2017, we had a net loss of $2.1 million, or $0.03 per basic and diluted share, compared to a net loss of $4.2 million, or $0.07 per basic and diluted share, in the comparative quarter. In the prior quarter, we had net income of $9.7 million.

Since April 12, 2017, when we acquired the Friesau sawmill and power plant in Germany (the “Friesau Facility”), we have two reportable operating segments being pulp and wood products.

Mr. David M. Gandossi, the Chief Executive Officer, stated: “In the current quarter, we completed the largest planned maintenance shut in our Celgar mill’s history. The shut was well planned and executed and we were also able to perform additional work that was intended to be completed later in the year. The mill returned to full production immediately after startup and continues to operate well through July. On average, our pulp mill production was up 7% compared to the same quarter of 2016 and included a quarterly production record at our Rosenthal mill. Pulp markets were generally strong and sales volumes were about 18% higher than the comparative quarter.”

Mr. Gandossi continued: “During the quarter, we had annual maintenance downtime of 22 days (approximately 32,500 ADMTs), which impacted our operating income by approximately $27.5 million, comprised of approximately $21.0 million in direct out-of-pocket expenses and the balance in reduced production. Many of our competitors that report their financial results using International Financial Reporting Standards (“IFRS”) capitalize their direct costs of maintenance downtime.”
more detail at:  https://mercerint.com/assets/docs/2017-07-27-mercer-q2-earnings-press-release-final.pdf

Related Posts

Kruger Newsprint Price Increase

The Antidumping and Countervailing Duties cases filed by Norpac in August against the Canadian UGW industry has reached the official stage of being investigated by the United States ITC and DOC. The increasing legal costs and the incremental costs associated with the inordinate amount of our corporate personnel’s time that is associated with the efforts needed to defend ourselves from the unfounded accusations levied on our industry are staggering. We also expect to have to start depositing interim duties beginning in early January 2018. Therefore, effective December 1, 2017, we will increase our 48.8 gms newsprint transaction price by $30/MT. The transaction price for our other newsprint and UGW grades and basis weights will increase accordingly. It is Kruger’s intention to rescind this increase once the threat of the duties is lifted and once the investigation is completed.

Mohawk Launches New Sustainable Promotion Titled “The Material is The Message”

In October 2021, Mohawk Fine Papers, Inc., North America’s largest privately owned manufacturer of fine papers and envelopes, introduced Paper With a Plan: A new attribute-driven approach to specifying paper. Mohawk refined and reorganized its paper portfolio into 5 distinct Collections that help make choosing paper by its properties and attributes easier. Mohawk’s paper grades are now grouped into the Beautiful, Sustainable, Expressive, Elevated, and Practical Collections. Mohawk recognizes that sustainability has never been more important to brand storytelling. As sustainability stories have become more sophisticated, so have the material inputs used that drive their narratives. Experience Mohawk’s Sustainable papers as they were intended with the release of the “The Material is the Message” inspiration piece.

UPM Raflatac receives recycled content certification for its PET PCR labeling materials sold in the U.S.

UPM Raflatac’s innovative Vanish PCR plastic labeling materials for the U.S. market have again been independently certified by SCS Global Services as featuring at least 90 percent post-consumer recycled content (PCR) in both the face and liner. The UPM Raflatac Vanish™ PCR range of clear PET films label materials enables brands to maximize eye-catching visuals with more sustainable labels that support the circular economy. Ideal for food, beverage, or personal care end-uses, these thin yet robust products use less raw material compared to other standard clear-on-clear products. Vanish PCR is the only clear-on-clear labeling solution on the market that incorporates recycled content, featuring PET face and liners made from 90 percent post-consumer recycled content. The recycled content in all of the UPM Raflatac 1.2 mil and 0.92 mil face and liner label materials have been verified in accordance with SCS Global Services’ Recycled Content Standard.
Back To Top
×Close search
Search