Business
Mercer International Inc. Reports 2006 Second Quarter Results
Mercer International Inc. Reports 2006 Second Quarter Results.
About this update from Mercado Minerals Ltd.
[{"type":"text","content":"\n\n\n\n\nNEW YORK, Aug. 8 /CNW/ -- Mercer International Inc.\n(Nasdaq: MERC), (TSX: MRI.U) today reported results for the second quarter of\n2006.\n\n\nSummary Selected Highlights\n\n\n Three Months Ended June 30,\n\n 2006 2005\n (in thousands)\nResults of Operations (unaudited)\n\nRevenues euro 166,705 euro 129,609\nIncome from operations 10,874 9,201\nOperating EBITDA(1) 25,742 23,097\nInterest expense 23,112 22,200\nUnrealized gain (loss) on derivative instruments 44,690 (69,451)\nUnrealized foreign exchange gain (loss) on debt 6,060 (9,806)\nNet income (loss) 18,421 (62,151)\nIncome (loss) per share\n Basic 0.56 (1.88)\n Diluted 0.45 (1.88)\nOther Data\nTotal pulp sales volume(2) (ADMTs) 329,265 278,752\nMill net pulp price realizations (per ADMT)(3) 453 403\n\n(1) For a definition of Operating EBITDA, see page 7 of this press release\n and for a reconciliation of net income (loss) to Operating EBITDA, see\n page 10 of the financial tables included in this press release.\n\n(2) Excluding intercompany sales volumes of 4,871 ADMTs and 4,105 ADMTs of\n pulp in the three months ended June 30, 2006 and 2005, respectively.\n\n(3) Excluding revenues from third party transportation activities.\n\n\nCertain key factors affecting our 2006 second quarter results include:\n\n Revenues increased by over 28% to euro 166.7 million from euro 129.6\n million in the comparative period of 2005, primarily due to higher sales\n from our Celgar and Stendal pulp mills.\n\n Pulp markets strengthened quarter over quarter. Average list prices for\n NBSK pulp in Europe were $665 per ADMT in the second quarter of 2006 and\n $618 per ADMT in the first quarter of 2006, compared to $613 per ADMT in\n the second quarter of 2005.\n\n Mill net pulp realizations increased to euro 453 per ADMT in the second\n quarter of 2006 from euro 425 and euro 413 per ADMT in the first quarter\n of 2006 and the fourth quarter of 2005, respectively.\n\n We took scheduled maintenance and strategic capital expenditure downtime\n of approximately 30 days at all of our pulp mills, of which 16 days were\n at our Rosenthal mill and 8 days were at our Celgar mill. The total\n maintenance costs associated with the shutdowns were approximately\n euro 4.3 million and were expensed in the quarter. Further, the Stendal\n mill underwent testing of various departments and converted some...