Business
Mercer International Inc. Reports 2007 First Quarter Results
Mercer International Inc. Reports 2007 First Quarter Results.
About this update from Mercado Minerals Ltd.
[{"type":"text","content":"\n\n\n\nNEW YORK, May 7 /CNW/ -- Mercer International Inc. (Nasdaq: MERC; TSX:\nMRI.U) today reported results for the first quarter of 2007. In 2006, we\ndivested our paper mills and account for this business as discontinued\noperations and its results are reported separately. 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 2007 First Quarter\n-- Revenues increased by 20% to euro 169.5 million from euro 141.7 million\n in the comparative quarter of 2006, primarily due to higher pulp\n prices.\n-- Operating EBITDA increased to euro 28.3 million in the first quarter\n from euro 24.7 million in the comparative quarter of 2006, primarily as\n a result of higher pulp prices, partially offset by higher fiber costs\n and a weakening U.S. dollar. For a definition of Operating EBITDA, see\n page 5 of this press release and for a reconciliation of net income to\n Operating EBITDA, see page 6 of the financial tables included in this\n press release.\n-- Pulp markets strengthened quarter over quarter. Average list prices\n for NBSK pulp in Europe were $757 per ADMT in the first quarter of 2007\n and $730 per ADMT in the fourth quarter of 2006, compared to $618 per\n ADMT in the first quarter of 2006.\n-- Fiber costs increased materially in the current quarter and, on\n average, were up approximately 20% over the prior quarter and over 50%\n from the first quarter of 2006.\n-- Mill net pulp realizations continued to increase in the first quarter\n of 2007 to euro 512 per ADMT on average from euro 425 per ADMT in the\n first quarter of 2006, primarily as a result of higher pulp prices.\n-- We had net income from continuing operations of euro 1.1 million, or\n euro 0.03 per basic and diluted share, in the current quarter which\n included a net gain on our derivatives of euro 6.6 million, compared to\n net income of euro 16.2 million, or euro 0.49 per basic and euro 0.40\n per diluted share, in the same period of 2006 which included a net\n unrealized gain on our derivatives of euro 40.8 million.\n\nPresident's Comments\nMr. Jimmy S.H. Lee, President and Chairman, stated:\n-- "Pulp markets remained strong in the first quarter of 2007. List\n prices in Europe increased by...