Catalyst Paper posts improved Q1 operating results

Pulp & Paper Canada
May 13, 2014
By Pulp & Paper Canada

Catalyst Paper recorded adjusted EBITDA of $25.7 million for Q1 2014 compared to $19.1 million in Q4 2013. Results reflect predominantly a weaker Canadian dollar, as well as higher pulp prices and improved production, according to the company. Production volumes were more than 2% higher than the prior year average. Sales of $273.9 million were negatively impacted by 8,000 tonnes of paper that were not shipped in the quarter due to the extended container truck driver strike at Port Metro Vancouver.

Free cash flow improved by $5.7 million over the previous quarter to $11.6 million.  Liquidity improved by $15.6 million to $138.2 million, net of restricted cash.

“We are starting to see the positive impact of cost control, improved safety and productivity in our operations,” said Catalyst president and CEO Joe Nemeth. “While the domestic paper market remains challenging, we continue to grow our market share in freight-logical, niche markets for coated mechanical and lightweight newsprint. Pulp markets are holding steady and as long as we keep up the strides we are making in productivity and cost control, we are well-positioned for the future.”

North American paper demand fell in all the grades that the company supplies, a combination of secular declines as well as publishers and retailers entering the seasonally slower time of the year, Catalyst reports. Benchmark prices for its specialty papers declined slightly, while newsprint remained flat.

For NBSK pulp, the benchmark price increased $16 per metric tonne as supply and demand conditions continued to be positive.

Add comment

Note: By submitting your comments you acknowledge that Pulp and Paper Canada has the right to reproduce, broadcast and publicize those comments or any part thereof in any manner whatsoever. Please note that due to the volume of e-mails we receive, not all comments will be published and those that are published will not be edited. However, all will be carefully read, considered and appreciated.

Security code

Subscription Centre

New Subscription
Already a Subscriber
Customer Service
View Digital Magazine Renew

Most Popular

Latest Events

Paperex 2017
November 1-4, 2017
European Paper Week 2017
November 28-30, 2017
PaperWeek Canada 2018
February 5-8, 2018
Tissue World Miami 2018
March 21-23, 2018
PaperCon 2018
April 15-18, 2018