Catalyst Paper loses $28M in Q2
Less demand for newsprint, directory paper drives loss.
Catalyst expects specialty paper prices to remain under pressure. Photo: Catalyst
RICHMOND, BC — Catalyst Paper said less demand for paper products, particularly newsprint and directories, contributed to the company experiencing a steep loss in the second quarter.
The BC-based pulp and paper producer reported a net loss of $28 million or $1.93 per share, more than double the $11.7 million, or three cents per share, loss in the same period a year earlier.
“Markets for all the company’s paper products remain challenging and demand trended down overall compared to the same period of the prior year,” the company said in a statement.
It said that newsprint sales declined by 8.9%, and directory paper sales fell by 15.2%.
Catalyst reported revenues of $263.4 million, slightly up from the $264.8 million reported in the second quarter of 2012.
Operating losses were $12 million from a $9.3 million profit a year ago.
The company expects specialty paper prices to remain under pressure, while newsprint demand will further weaken as media companies continue to migrate towards electronic media.
It sees modest growth as the US economy continues to strengthen, but Canadian growth is expected to slow.
© 2013 The Canadian Press