Business
Mercer International Inc. Reports 2007 Second Quarter Results
Mercer International Inc. Reports 2007 Second Quarter Results.
About this update from Mercado Minerals Ltd.
[{"type":"text","content":"\n\n\n\nNEW YORK, Aug. 7 /CNW/ -- Mercer International Inc. (Nasdaq: MERC, TSX:\nMRI.U) today reported results for the second 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, prior year\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 Second Quarter\n-- Revenues increased by 17% to euro 176.6 million from euro 150.6 million\n in the comparative quarter of 2006, driven by stronger pulp prices and\n higher sales volume. Average NBSK list prices in Northern Europe rose\n to $783 per ADMT in the quarter from $757 in Q1 and $665 per ADMT in\n the second quarter of 2006. Gains in our pulp price realizations as a\n result of stronger pulp prices were partially offset by a weakening\n U.S. dollar, such that our average pulp price realizations increased\n only marginally to euro 518 per ADMT from euro 512 per ADMT in the\n prior quarter. The U.S. dollar was weaker in the quarter relative to\n both the Euro and Canadian dollar, falling in value by 3% and 4%\n respectively.\n-- We completed scheduled annual maintenance downtime at two of our three\n mills and the final strategic capex upgrades at Celgar. This reduced\n production by approximately 36,000 ADMTs.\n-- Fiber prices, while materially higher than in the prior year period,\n fell from Q1 levels and in Europe are continuing to trend downwards.\n-- Operating EBITDA in the quarter was virtually unchanged from the year\n prior at euro 25.0 million as improved prices were offset by higher\n fiber costs, currency changes and lower production as a result of\n scheduled downtime. For a definition of Operating EBITDA, see page 5\n of this press release and for a reconciliation of net income from\n continuing operations to Operating EBITDA, see page 8 of the financial\n tables included in this press release.\n-- Net income from continuing operations was euro 3.3 million, or euro\n 0.09 per basic and diluted share, in the current quarter which included\n a net gain on our derivatives and foreign currency denominated long-\n term debt of euro 19.4 million, compared to net income of euro 18.3\n million, or euro 0.55 per basic an...