Mercer International Inc. Reports 2007 Third Quarter Results

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[{"type":"text","content":"\n\n\n\nNEW YORK, Nov. 5 /CNW/ -- Mercer International Inc. (Nasdaq: MERC, TSX:\nMRI.U) today reported results for the third 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\nThe quarter ended September 30, 2007 was operationally one of our best\never with record pulp production and shipments. In addition, our financial\nresults were solid despite the continued weakening of the U.S. dollar against\nthe Euro and higher fiber costs in the current quarter. High mill\nefficiencies and only nine days of annual maintenance downtime were the\nprimary drivers of the operational results. Demand for NBSK remained strong\nthroughout the quarter which enabled us to secure price increases in both the\nEuropean and Asian markets which were partially offset by the impact of the\nweak U.S. dollar.\n\n\nHighlights of the 2007 Third Quarter\n\n\n-- Revenues increased by 12% to euro 191.1 million from euro 171.2 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 $810 per ADMT in the quarter from $783 per ADMT in the prior quarter\n and $708 per ADMT in the third quarter of 2006.\n-- Our average pulp price realizations increased to euro 520 per ADMT from\n euro 482 in the same quarter of 2006 but were only marginally higher\n than euro 518 per ADMT in the prior quarter of 2007 as higher prices\n were largely offset by a weakening U.S. dollar. During the third\n quarter, the U.S. dollar was weaker relative to both the Euro and\n Canadian dollar, falling in value by 2% and 5% respectively compared to\n the second quarter of 2007 and 7% against each such currency in the\n comparative period of 2006.\n-- On average, fiber prices were approximately 33% higher than in the\n prior year period but decreased marginally from prior quarter levels.\n-- Operating EBITDA in the current quarter of euro 35.8 million was down\n compared to the comparative quarter in 2006 of euro 48.2 million as\n higher sales and productivity along with improved prices were mo...

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