Industry Trends (April 01, 2007)
April 1, 2007 By Pulp & Paper Canada
ABITIBI-CONSOLIDATED posted a fourth quarter loss of $22 million, or five cents a share. This compares to a loss of $355 million, or 81 cents a share in the same quarter of 2005. For the full year, th…
ABITIBI-CONSOLIDATED posted a fourth quarter loss of $22 million, or five cents a share. This compares to a loss of $355 million, or 81 cents a share in the same quarter of 2005. For the full year, the company recorded net earnings of $54 million, or 12 cents a share, compared to a loss of $350 million, or 80 cents a share in the same period last year. Major specific items impacting fourth quarter results included the CVD/AD softwood lumber refunds, partly offset by a loss on translation of foreign currencies. In 2005 by comparison, major specific items included asset write downs and tax adjustments.
BOWATER reported net income for the fourth quarter of 2006 of $107.2 million, or $1.86 per diluted share, on sales of $861.3 million. These results compare with a net loss of $101.9 million, or $1.78 per diluted share, on sales of $876.4 million for the fourth quarter of 2005. For the full year 2006, the company reported a net loss of $138.3 million, or $2.41 per diluted share. This compares with a net loss of $120.6 million, or $2.10 per diluted share, for 2005. Sales in 2006 totaled $3.53 billion, up slightly from 2005 sales of $3.48 billion.
CANFOR reported net income of $471.8 million for the year, or $3.31 per share on a diluted basis. Net income of $465.3 million, or $3.26 per share, was recorded for the fourth quarter. These results include a refund of antidumping and countervailing duties plus interest of $551.2 million after tax, which had a $3.87 favourable impact on earnings per share in the quarter.
CATALYST PAPER recorded operating earnings of $3.9 million in 2006, compared to an operating loss of $25.2 million in 2005. Net loss for the year was $15.9 million, or $0.07 per common share on sales of $1,882.5 million. This compares to a net loss of $25.6 million, or $0.12 per common share in 2005 on sales of $1823.9 million. EBITDA totaled $211.0 million in 2006, up from $155.2 million in 2005.
DOMTAR announced earnings of $91 million, or $0.39 per common share, in the fourth quarter of 2006, compared to a loss of $271 million, or $1.18 per common share, in the fourth quarter of 2005 and earnings of $22 million, or $0.09 per common share, in the third quarter of 2006. For the full year of 2006, Domtar recorded a net profit of $328 million ($1.42 per common share) compared to a net loss of $388 million ($1.69 per common share) in 2005.
INTERNATIONAL FOREST PRODUCTS recorded a net profit of $77.2 million or $1.60 per share in the fourth quarter of 2006, compared to net earnings of $1.6 million or $0.03 per share in the immediately preceding quarter, and a net loss of $4.9 million or $0.10 per share in the fourth quarter of 2005. The company posted net earnings of $95.5 million, or $1.97 per share, compared to net earnings of $19.7 million or $0.41 per share for the year that ended December 31, 2005.
INTERNATIONAL PAPER reported full-year 2006 earnings of $1.1 billion, or $2.18 per share, compared with $1.1 billion or $2.21 per share in 2005. The company posted fourth-quarter 2006 net earnings of $2.0 billion, or $4.37 a share, compared with earnings of $202 million or $042 per share in the third quarter of 2006 and a loss of $77 million, or $016 per share, in the fourth quarter of 2005.
KIMBERLY-CLARK reported fourth quarter net sales of $4.3 billion, an increase of 7.4%. Diluted net income per share was $1.05, compared with $0.79 in the prior year. Adjusted earnings in the fourth quarter of 2006 were $1.03 per share.
NEENAH PAPER reported income from the fourth quarter of $3.2 million, or $0.21 per diluted common share, compared with a loss of $2.7 million, or $0.18 per diluted common share for the fourth quarter of 2005. Net sales for the fourth quarter increased 30% versus the previous year to $177.2 million, while operating income increased from $0.6 million in the fourth quarter of 2005 to $9.0 million in the current quarter.
NORBORD reported a loss of $1 million for the fourth quarter of 2006, compared to earnings of $7 million in the prior quarter and earnings of $52 million in the same quarter last year. Fourth quarter EBITDA remained positive, as $22 million. The company’s total 2006 earnings were $97 million, or $0.67 per share, compared to 2005 earnings of $248 million, or $1.61 per share.
SFK PULP FUND recorded fourth quarter sales of $110.5 million. Earnings before interest, taxes, depreciation and amortization stood at $14.5 million and net loss was $0.1 million. This compares to sales of $56.5 million, or EBITDA of $0.4 million and a net loss of $8.4 million for the same period last year. For the year that ended December 31, 2006, the company recorded sales of $312.4 million, EDBITDA of $43.0 million and net earnings of $1.3 million. For 2005, the company recorded sales of $236.2 million, EBITDA of $29.3 million and a net loss of $5.2 million.
SMURFIT-STONE CONTAINER reported net income available to common stockholders of $22 million, or $0.09 per diluted share, for the fourth quarter of 2006.
Fourth quarter 2006 results compare favorably to a net loss of $0.36 per diluted share for the prior year fourth quarter, which included a net $0.08 per share charge for litigation settlement, restructuring charges, and other unusual items. Sales for the fourth quarter 2006 were $1.8 billion, compared to $1.6 billion in the fourth quarter of 2005.For the full year 2006, Smurfit-Stone reported a net loss available to common stockholders of $71 million, or $0.28 cents per diluted share, compared to a net loss available to common stockholders of $339 million, or $1.33 per diluted share in 2005.
TEMBEC sales for the quarter that ended December 30, 2006 were $724 million, down from $789 million in the comparable period last year. The company generated net earnings of $138 million or $1.62 per share compared to a net loss of $75 million or $0.88 per share in the corresponding quarter that ended December 24, 2005, and a net loss of $54 million or $0.64 per share in the previous quarter. EBITDA was $13 million, compared to a negative EBITDA of $32 million a year ago and EBITDA of $30 million in the prior quarter.
TIMBERWEST generated distributable cash of $27.5 million, or $0.35 per stapled unit for the fourth quarter, and $103.8 million of distributable cash, or $1.34 per unit, for the year 2006. This compares to $29.7 million of distributable cash for the fourth quarter of 2005, or $0.38 per unit and $67.3 million or $0.87 per unit, for the year 2005.
WEYERHAEUSER reported net earnings of $395 million for 2006, or $1.61 per diluted share, on net sales of $21.9 billion. This compares with net earnings of $733 million, or $2.98 per diluted share, on net sales of $22 billion for 2005.
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