Mercer International, a global pulp manufacturing company, reported results for the 3Q ended September 30, 2015. For the 3Q 2015, net income was $23.8 million, compared to $88.3 million, or $1.38 per basic and $1.37 per diluted share, in the comparative quarter of 2014 and $16.4 million, or $0.25 per basic and diluted share, in the prior quarter.
David Gandossi, the CEO, stated: “In the 3Q 2015, we had overall good operating performance at our mills and Operating EBITDA of $61.1 million, after giving effect to approximately $4.1 million in direct costs attributable to annual maintenance downtime. Many of our competitors who report their financial results using International Financial Reporting Standards (“IFRS”) capitalize their direct costs of maintenance shutdowns.”
Mr. Gandossi added: “Net income increased to $23.8 million from $16.4 million in the prior quarter. Net income in the comparative quarter of 2014, which included aggregate non-cash gains of $63.2 million on settlement of debt and recognition of tax loss carryforwards, was $88.3 million.”
Total revenues for the three months ended September 30, 2015 decreased by approximately 10% to $270.9 million from $301.6 million in the same quarter of 2014, primarily due to lower pulp sales realizations.
Pulp production decreased marginally to 369,473 ADMTs in the current quarter from 375,742 ADMTs in the same quarter of 2014.
In the 3Q 2015, operating income decreased by approximately 9% to $44 million from $48.2 million in the same quarter of 2014, primarily due to lower pulp sales realizations, partially offset by the net positive impact of a stronger U.S. dollar relative to the euro and Canadian dollar. Total revenues for the nine months ended September 30, 2015 decreased by approximately 11% to $795.4 million from $892.5 million in the same period in 2014, primarily due to lower pulp sales realizations.