Operating profit for January–March 2015 was SEK 396 million (January–March 2014: SEK 389 million). Profit was positively affected by increased sales of paperboard and reduced production costs, while major planned maintenance and rebuilding shutdowns had a negative impact of SEK 130 million. Price decreases for printing paper and sawn timber were offset by a weaker Swedish krona. Compared with the fourth quarter, operating profit decreased by SEK 76 million, excluding the previous quarter’s item affecting comparability. The decrease was due to maintenance and rebuilding shutdowns, which was partly offset by improved profit for forest and energy.
RISI reports that Lecta and Burgo are separately raising prices by 6% to 7% on CWF and UWF grades effective with deliveries from July 2018 onward.
Interfor announced it has resumed operations at its sawmill in Georgetown, South Carolina following record rainfalls and extensive flooding in the area over the past two months. During the height of the rainstorms from October 1-5, two feet of rain fell in Georgetown County. The subsequent flooding damaged thousands of homes and businesses and caused the closure of roads and bridges across the state. The rainfall also softened the forest ground making it difficult for logging equipment to operate.
Catalyst reported a net loss, excluding specific items, of $10.4 million in Q4 compared to $10.8 million in Q3. Operating results were impacted by increased manufacturing expenses, including higher rates for electricity, as well as costs related to the indefinite curtailment of Paper Machine No. 9 at the Powell River mill, and the acquisition of the Biron paper mill in Wisconsin and the Rumford pulp and paper mill in Maine. “Our results reflect critical decisions to position the company effectively for the future,” said Joe Nemeth, Catalyst President & CEO. “In Q4, we incurred one-time costs and made strategic investments that will enable us to optimize our product mix and performance, while continuing to focus on cost, productivity, efficiency and customer service.”