Catalyst Paper Q3 Market Update
(Richmond, Canada, Nov 8, 2016) Overall, market conditions continued to be challenging in the third quarter. With the exception of the demand for coated free sheet (CFS), North American demand decreased for all of our paper grades compared to the same quarter last year. Negative market conditions were addressed by optimizing product mix to increase our market share of higher margin CFS and coated one side (C1S), and reducing basis weights. C1S specialty paper volumes have increased by more than 50 per cent compared to the same period last year and are tracking well ahead of this year’s projections.
We also focused on developing and commercializing new products for growth specialty markets. In September, we were pleased to announce the launch of Glide Graphics, one of the new specialty grades that we successfully commercialized in 2016. Glide Graphics was specifically developed for large-size graphic applications used in transportation, fleet and vehicle graphics, as well as commercial graphics. Glide Graphics is the first in a series of release liner base papers for North American pressure sensitive markets.
Demand for NBSK pulp was steady through the quarter, with prices continuing to trade in a narrow range.
The United States Department of Commerce recently extended its deadline by nine days to deliver the preliminary results of the expedited review of Canadian imports of supercalendered (SC) paper to the U.S. The preliminary results are now expected to be public on November 17, 2016.
Catalyst Paper Q3 Results:
Catalyst Paper Corporation today reported significantly improved operating results for the quarter ended September 30, 2016 despite a non-cash impairment write-down of $186.4 million on fixed assets at our Powell River, Port Alberni and Crofton paper mills resulting in a $185.0 million net loss in the quarter. Excluding the non-cash impairment write-down and other significant items in the quarter, Catalyst reported net earnings before these items of $7.6 million. This compared to a net loss of $26.6 million and a net loss before specific items of $27.3 million in the previous quarter.
To read more Go To: http://www.catalystpaper.com/ OR http://www.catalystpaper.com/media/news/investor-relations/catalyst-reports-significantly-improved-operating-results-third (Source: press release)
Pictured Above: Catalyst Paper Crofton mill (courtesy Catalyst)