Catalyst loss
Lower sales volumes, higher maintenance spending and a stronger Canadian dollar negatively impacted Catalyst Paper Corporation’s fourth quarter results.
Catalyst posted a net loss of $35.2 million for the quarter, in contrast to net earnings of $655.7 million in the third quarter, when one-time gains were realized on emergence from creditor protection. Before specific items, net losses were $15.7 million and $7.5 million in the fourth and third quarter respectively.
Market conditions were mixed during the fourth quarter, with North American paper demand down from the third quarter for directory and newsprint and up for coated and uncoated grades. Benchmark prices were up for newsprint and coated and otherwise stable for paper, while there was moderate benchmark price recovery for pulp. A market curtailment at Powell River was necessary over the holidays to balance production with orders and Catalyst incurred a loss from discontinued operations largely due to an increased estimated pension withdrawal liability associated with the closure of the Snowflake mill in the United States.
“We saw lower prices for coated and newsprint and weaker demand across our paper product lines in 2012,” said Kevin Clarke, president and CEO. “However, capacity reductions helped mitigate the demand impacts.”
Pulp prices took a hit as markets weakened in China due to overstocked inventories, Clarke also said. “These sorts of challenges aren’t going away, but with a better cost structure across all product segments and continued market share momentum, we’re better positioned to take them on.”
Net earnings of $583.2 million for 2012 were heavily impacted by one-time non-cash restructuring credits and fair value accounting adjustments. This compared with a $974-million net loss in 2011 which was driven largely by asset impairment charges.
Catalyst entered creditor protection on January 31, 2012 and exited on September 13, 2012, with 60 per cent reduction in its debt and a range of other cost reductions.
Midgets win
Powell River CEP Local 76 Midget Kings have won the Vancouver Island Midget Tier II Championship. They will represent the island at the BC Hockey Midget Tier II Championship in West Kelowna, March 17 to 20.
The team had a successful season placing first in Vancouver Island Amateur Hockey Association Tier 1 division.
“They are very excited about representing their hometown against the best teams from around the province,” said team spokesperson Yvonne Russell.
The boys won a best-of-three series against Juan de Fuca. “The team played hard and came out with the energy and drive to win,” said Russell.
The team is actively fundraising and seeking sponsorships to help offset the cost of competing in provincials.
“We appreciate the generous support of the community in the past and are hoping people will be able to help us once again,” Russell said. “The team is looking for any donation an individual or business is able to make.”
The boys are hosting two fundraisers this weekend—a car wash from 11 am to 3 pm Saturday, March 9 at Safeway parking lot and a beer and burger night starting 4 pm, Sunday, March 10 at Carlson Community Club.
Readers looking for information, tickets or ways to donate to the team, can call Russell at 604.483.1941.
