Catalyst Paper loses $47.4 million on reduced production and higher downtime

RICHMOND, B.C. – Catalyst Paper (TSX:CTL) lost $47.4 million during the second quarter on $297.8 million of revenue due to reduced production and increased maintenance spending.

The B.C.-based pulp and paper producer lost 13 cents per share for the period ending June 30. That compared to 96 cents a year earlier when it faced costs related to the closure of its Elk Falls mill and paper recycling division.

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Excluding specific items – such as $5.7 million in fire-related losses at two mills – Catalyst lost $46.9 million, or 12 cents per share, compared to an 11-cent loss a year earlier.

Revenues fell slightly to $297.8 million.

The results during the second quarter were weaker than the prior period when it lost $12.9 million, or three cents per share, on $303.6 million of revenue.

The company blamed lower production and higher maintenance spending.

Production at the Powell River and Snowflake mills was affected by extended maintenance downtime and further hampered by fires at both mills during the quarter.

A stronger Canadian dollar and higher fibre prices also negatively affected results.