Business
Mercer International Inc. Reports 2006 Fourth Quarter and Year End Results
Mercer International Inc. Reports 2006 Fourth Quarter and Year End Results.
About this update from Mercado Minerals Ltd.
[{"type":"text","content":"\n\n\n\nNEW YORK, Feb. 26 /CNW/ -- Mercer International Inc. (Nasdaq: MERC; TSX:\nMRI.U) today reported results for the fourth quarter and year ended December\n31, 2006. In 2006, we divested our paper mills and, pursuant to SFAS 144,\naccount for this business as discontinued operations and its results are\nreported separately as discontinued operations. As a result, previously\nreported amounts have been reclassified to conform to the current\npresentation. Except as otherwise noted, the following discussion relates to\nour continuing operations.\n\n\nHighlights of the 2006 Fourth Quarter\n\n\n-- Revenues increased by 30.5% to euro 160.5 million from euro 123.0\n million in the comparative quarter of 2005, primarily due to higher\n pulp prices and sales volumes from our Stendal and Celgar pulp mills.\n\n-- Operating EBITDA increased to euro 50.2 million in the fourth quarter\n from euro 13.1 million in the comparative quarter of 2005. For a\n definition of Operating EBITDA, see page 5 of this press release and\n for a reconciliation of net income (loss) to Operating EBITDA, see page\n 8 of the financial tables included in this press release.\n\n-- Pulp markets continued to strengthen. Average list prices for NBSK\n pulp in Europe were $730 per ADMT in the fourth quarter of 2006, $710\n per ADMT in the third quarter of 2006 and $600 per ADMT in the fourth\n quarter of 2005.\n\n-- In December 2006, we curtailed production of approximately 20,000 ADMTs\n of pulp at our German pulp mills because of fiber supply imbalances.\n\n-- We recorded a net gain on our outstanding derivatives of euro 34.8\n million and a loss of euro 1.5 million in the fourth quarter of 2006\n and 2005, respectively.\n\n-- We had net income of euro 28.6 million, or euro 0.85 per basic and euro\n 0.66 per diluted share, in the current quarter, compared to a net loss\n of euro 27.2 million, or euro 0.82 per basic and diluted share, in the\n same period of 2005.\n\nHighlights of 2006\n\n-- Revenues in 2006 increased by approximately 38% to euro 624.0 million\n from euro 452.4 million in 2005, primarily as a result of higher pulp\n prices and increased sales volumes at our Stendal and Celgar mills.\n\n-- Operating EBITDA increased by 112% to euro 148.3 million in 2006 from\n euro 69.8 million in 2005 reflecting higher pulp sales. For a\n definition of Operating E...