Fortress Paper Ltd. reported a 2014 second quarter EBITDA loss of $6.0 million. The dissolving pulp segment generated EBITDA loss of $4.2 million while the security paper products segment generated EBITDA loss of $0.4 million. Corporate costs contributed $1.4 million to EBITDA loss.
However, management says it is encouraged by results from the Fortress Specialty Cellulose mill in Thurso, Que., for the quarter ended June 30, 2014. Although dissolving pulp market conditions continue to be challenging, production efficiencies and cash costs improved during the quarter and relative to comparative periods. Fortress’ dissolving pulp segment continues to be affected by poor market conditions and the anti-dumping duty imposed by China's Ministry of Commerce in April 2014.
The Fortress Specialty Cellulose mill produced 31,039 air dried metric tonnes of dissolving pulp and 13,693 ADMT of northern bleached hardwood kraft (NBHK) pulp during the second quarter of 2014. The company sold 27,723 ADMT of dissolving pulp and 15,620 ADMT of NBHK pulp in the same time period.
In the security papers segement, the Landqart mill continues to implement new initiatives to improve efficiencies and profitability, says Fortress. Less than favourable conditions, including the strength of the Swiss franc against the Euro and strong competition for orders putting pressure on pricing, continue to adversely impact the results of this business unit.