Selected Highlights
- Continued to grow our mass timber business with the acquisition of substantially all of the U.S. and Canadian mass timber assets of the Structurlam group of companies and ramping up operations and its order book
- Second quarter negative Operating EBITDA* of $68.7 million and net loss of $98.3 million after giving effect to a non-cash inventory impairment of $51.4 million or $0.77 per share
- Quarterly cash dividend of $0.075 per share
NEW YORK, NY, August 3, 2023 - Mercer International Inc. (Nasdaq: MERC) today reported second quarter 2023 Operating EBITDA decreased to negative $68.7 million from positive $145.1 million in the second quarter of 2022 and positive $27.5 million in the first quarter of 2023.
In the second quarter of 2023, net loss was $98.3 million (or $1.48 per share) compared to net income of $71.4 million (or $1.08 per basic share and $1.07 per diluted share) in the second quarter of 2022 and a net loss of $30.6 million (or $0.46 per share) in the first quarter of 2023.
In the first half of 2023, Operating EBITDA was negative $41.2 million a decrease from positive $299.5 million in the same period of 2022. In the first half of 2023, net loss was $128.9 million (or $1.94 per share) compared to net income of $160.3 million (or $2.43 per basic share and $2.41 per diluted share) in the same period of 2022.
Mr. Juan Carlos Bueno, the Chief Executive Officer, stated: “Our second quarter results were negatively impacted by the overall weakness in the pulp and lumber markets. Lower pulp prices were primarily the result of weak demand for paper caused by weak economic growth and high inventory levels along with slower than anticipated market recovery in post-Covid China. In particular, on average, hardwood pulp prices declined by over $225 per tonne or approximately 32% in the current quarter. As a result of this weakness in the pulp market, we took a non-cash inventory impairment of $51.4 million in the current quarter, of which $26.3 million related to hardwood fiber inventory and pulp at our Mercer Peace River mill. The mill had materially built up its hardwood fiber inventory in connection with the start-up of its new woodroom which commenced operations in the recent quarter.
Source: Mercer International
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