Fortress Global Enterprises Reports Second Quarter 2019 Results

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Fortress Global Enterprises Inc.reported 2019 second quarter operating EBITDA loss of $9.5 million compared to operating EBITDA loss of $9.7 million in the previous quarter and operating EBITDA of $2.7 million in the prior year comparative period. The Dissolving Pulp Segment incurred operating EBITDA loss of $8.5 million.

Vancouver, British Columbia, August 6, 2019

Second Quarter 2019 Consolidated Results

Fortress Global Enterprises Inc. ("Fortress Global Enterprises" or the "Company") (TSX:FGE) (OTCQX:FTPLF) reported 2019 second quarter operating EBITDA loss of $9.5 million compared to operating EBITDA loss of $9.7 million in the previous quarter and operating EBITDA of $2.7 million in the prior year comparative period. The Dissolving Pulp Segment incurred operating EBITDA loss of $8.5 million. Development costs incurred in the Bioproducts Segment were $2.2 million which was offset by $2.1 million of grants and funding. Corporate costs were $0.9 million in the second quarter of 2019.

Giovanni Iadeluca, Chief Executive Officer of Fortress Global Enterprises, commented:

“Due to a combination of factors, such as a lower realized sales price resulting from decreased dissolving pulp prices, an inventory write-down and production challenges coupled with an extended annual maintenance shutdown, operating results in the second quarter of 2019 were below management expectations. Current dissolving pulp prices remain well below pricing experienced over the past 10 years; however, management believes dissolving pulp prices should trend towards more normalized pricing in the short term.”

“With support from our partners, the Company believes it can endure the current market uncertainty in part caused by the trade dispute between China and the United States which is impacting global trade. China represents approximately 65% of the dissolving pulp market.”

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Source: Fortress Global Enterprises

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