North Vancouver-based Fortress Paper Ltd. (TSX:FTP) reported a 60% increase in second quarter profit for the period ending June 30, 2010.
Net income rose to $4.3 million from sales of $60.5 million, up from a net profit of $2.7 million from sales of $49.6 million for the company that produces specialty wallpapers and security paper for passports and currencies.
The company recently acquired the Thurso mill in Quebec from Fraser Paper Inc. for $1.2 million. Pulp sales from the mill were cited as one of the key contributors to improved quarterly results by capitalizing on stronger pulp prices in the quarter. Pulp earnings offset an increased cost of sales and slightly decreased margins at Fortress’ Dresden, Germany and Landqart, Switzerland mills.
Fortress Paper shipped 18,848 tonnes of pulp and 16,324 tonnes of specialty paper in the quarter.
For the first half of the year, the company reported net income of $7.3 million on sales of $110.8 million, up from net income of $5.2 million from $96.3 million in sales.
Fortress Paper’s share price range during the past week: between $27.50 and $29.30; 52-week high: $29.47; 52-week low: $7.