Catalyst Paper posted a net loss of $12.9 million ($0.03 per common share) on sales of $303.6 million in the first quarter of 2011, reflecting a post-holiday season plateau in paper markets. Sales revenues were negatively impacted by the above-par Canadian dollar; however a foreign exchange gain was recorded on the translation of U.S. dollar denominated debt. In the previous quarter, net earnings of $9.6 million ($0.02 per common share) were recorded on sales of $333.6 million.
Before specific items the net loss was $23.6 million ($0.06 per common share) in the first quarter. That was down from net earnings before specific items of $4.1 million ($0.01 per common share) in the prior quarter. The first quarter operating loss was $10.9 million, in contrast to operating earnings of $0.2 million in the fourth quarter of 2010.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first quarter were $15.9 million, down from $28.7 million in the prior quarter and up from negative $16.2 million in the first quarter of 2010. EBITDA was not impacted by specific items in either the current or the prior quarter, and was negative $2.1 million before specific items in the first quarter of 2010.
"Despite the normal seasonal slump in this early part of the year, quarter-to-quarter prices improved for most paper grades, and pulp markets were strong after a brief falter in late 2010," said President and CEO Kevin J. Clarke. "It wasn’t enough to balance the impact of an above-par Canadian dollar and inflationary cost pressures on our Q1 results. However, our order book is strong as we head into the second quarter and we continue to look to grow share in our key product lines in the balance of the year. On the operations side, full mill shutdowns for planned maintenance at our Powell River and Snowflake mills will have an impact on our production volumes in the second quarter."
