Fortress Paper reported a 2014 second quarter EBITDA loss of $6.0 million. The Dissolving Pulp Segment generated EBITDA loss of $4.2 million and the Security Paper Products Segment generated EBITDA loss of $0.4 million. Corporate costs contributed $1.4 million to EBITDA loss.
The Company is encouraged by the Fortress Specialty Cellulose mill results in the quarter ended June 30, 2014. Although the dissolving pulp market conditions continue to be challenging, production efficiencies and cash costs improved during the quarter and relative to comparative periods. The 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 ("ADMT") 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 second quarter of 2014.
The Landqart mill continues to implement new initiatives to improve efficiencies and profitability. EBITDA for the Security Paper Products Segment for the quarter ended June 30, 2014 was $3.6 million lower when compared to the first quarter of 2014, and $0.9 million lower compared to the second quarter of 2013. A large production run was shipped in early July and therefore not included in second quarter results. 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 the Security Paper Products Segment. The Landqart mill achieved 1,921 tonnes of security paper sales in the second quarter of 2014, compared to 2,583 tonnes of security paper sales in the first quarter of 2014.
