Mercer International Inc. Reports Record Production and 2007 Fourth Quarter and Year End Results

About this update from Mercado Minerals Ltd.

[{"type":"text","content":"\n\n\n\nNEW YORK, Feb. 13 /CNW/ -- Mercer International Inc. (Nasdaq: MERC, TSX:\nMRI.U) today reported results for the fourth quarter and year ended December\n31, 2007. In 2006, we divested our paper mills and its results are reported\nseparately as discontinued operations.\n\n\nThe quarter ended December 31, 2007 concluded our best year\noperationally. As a result of capital and other initiatives, all three of our\nmills had record annual production and two of the mills set quarterly\nproduction records in the fourth quarter. While demand for NBSK pulp was\nstrong throughout the year, price increases were more than offset by the\nweakening U.S. dollar and higher fiber costs.\n\n\nHighlights of the 2007 Fourth Quarter\n\n\n-- Revenues increased by 4% to euro 167.1 million from euro 160.5 million\n in the comparative quarter of 2006, primarily as a result of higher\n pulp prices. Average NBSK pulp list prices in Europe rose to $850 per\n ADMT in the quarter from $810 per ADMT in the prior quarter and $730\n per ADMT in the fourth quarter of 2006.\n-- Our average pulp sales realizations were euro 512 per ADMT in the\n fourth quarter of 2007 compared to euro 520 per ADMT in the third\n quarter of 2007, as higher prices were more than offset by the\n weakening U.S. dollar. Average sales realizations in the fourth quarter\n of 2006 were euro 480 per ADMT. During the fourth quarter of 2007, the\n U.S. dollar was weaker relative to both the Euro and Canadian dollar,\n falling in value by 5% and 6%, respectively, compared to the third\n quarter of 2007 and 11% and 14% from the fourth quarter of 2006.\n-- Fiber prices, on average, were relatively unchanged from the third\n quarter but were approximately 10% higher than the fourth quarter of\n 2006.\n-- Operating EBITDA in the current quarter decreased to euro 37.2 million\n from euro 50.2 million in the comparative quarter in 2006 as higher\n productivity and improved prices were more than offset by higher fiber\n costs and the weakening U.S. dollar. For a definition of Operating\n EBITDA, see page 6 of this press release, and for a reconciliation of\n net income from continuing operations to Operating EBITDA, see page 7\n of the financial tables included in this press release.\n-- Net income was euro 7.2 million, or euro 0.20 per basic and euro 0.18\n per diluted share, in the current ...

More updates from Mercado Minerals Ltd.