Mercer International’s Wood Products Segment Posted Record Results
Rubber and Wood | 2021-02-19 12:08:18
The improved fourth quarter results were mainly on account of improved pulp pricing and moderately lower fiber costs.
By Paul Ploumis
SEATTLE (Scrap Monster): Mercer International Inc. reported fourth quarter and yearly result for 2020.
The company reported Q4 operating EBITDA of $49.5 million. This compares with $45.6 million in the third quarter of 2020. It posted net loss of $13 million or $0.20 per share, compared with net income of $7.5 million or $0.11 per share in Q3 2020. Meantime, the full-year 2020 operating EBITDA was down by 8% from $210.4 million in 2019 to $192.7 million. The net loss swelled to $17.2 million or $0.26 per share, as compared with $9.6 million or $0.15 per share in 2019.
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The improved fourth quarter results were mainly on account of improved pulp pricing and moderately lower fiber costs. The notable improvement in pulp market fundamentals during the final quarter of 2020 resulted in record sales volume. The wood products segment reported record operating results, driven by strong demand and robust pricing in the U.S. market. Nearly 37% of the total lumber sales volume was to the U.S.
Commenting on the results, Mr. David Gandossi, CEO, Mercer International noted that all of the company’s mills ran well in Q4 last year. The Friesau sawmill delivered record operating income of $12.9 million in Q4 2020. Also, the Rosenthal and Peace River mills completed annual maintenance downtime, he added.
