Catalyst Paper reported a net loss of $9.8 million in the first quarter of 2013, an improved result compared with the $35.2 million loss the company took in the last quarter of 2012.
The Richmond company reported adjusted earnings of $11.2 million, up from $7.2 million in the fourth quarter.
China’s demand for pulp and higher pulp prices helped nudge the company's revenue upwards, said Catalyst CEO Kevin Clarke.
“But we had much tougher conditions on the paper side of the business, with a 10% drop in North American demand for newsprint and a 15% decrease in directory paper,” he noted.
In 2012, the company was forced to file for creditor protection, reorganize, cut workers' pay, and sell and close a number of mills.
In January 2013, Catalyst relisted its shares on the Toronto Stock Exchange.
In Q1, the company also:
- sold its Snowflake mill in Arizona, its shares of Apache Railway and its 50% interest in Powell River Energy Inc. (PREI);
- distributed $12.7 million to its last outstanding creditors from the sale of PREI; and
- launched two new paper products for the newsprint and magazine market.
The company expects to see further demand and higher prices for pulp, while paper is expected to continue to decline.
