Result Fortress Paper Announces First Quarter 2013 Results, VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 13, 2013) -
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Fortress Paper Ltd. (TSX:FTP) ("Fortress Paper", "we", "our", "us" or the "Company") reported 2013 first quarter EBITDA loss of $2.6 million. Excluding corporate costs, combined EBITDA loss of the three business segments Fortress operated in during the first quarter of 2013 was $0.3 million in the three months ended March 31, 2013. The recently discontinued Specialty Papers Segment contributed $10.5 million EBITDA, while the Dissolving Pulp Segment and the Security Paper Products Segment generated EBITDA losses of $8.7 million and $2.1 million, respectively. Corporate costs contributed to EBITDA loss in the amount of $2.3 million.
Fortress reported a net loss (including discontinued operations) of $12.4 million, or diluted loss per share of $0.85 for the first quarter of 2013 on sales of $99.7 million. In the fourth quarter of 2012, the Company reported a net loss of $4.2 million or diluted loss per share of $0.29 on sales of $96.1 million, and for the first quarter of 2012 net loss of $10.7 million or diluted loss per share of $0.75 on sales of $61.4 million.
The Fortress Specialty Cellulose mill is still considered to be in ramp up mode working towards full capacity and operating efficiencies. Although market prices for dissolving pulp improved in the first quarter of 2013, our sales in one quarter are typically secured by the end of the previous quarter. The combination of the lower realized dissolving pulp prices and challenges experienced at the mill contributed to disappointing results in the first quarter of 2013.
The Security Paper Products Segment had its best quarterly result in the past two years. Metrics continue to improve as the Landqart mill experienced its highest sales volumes and revenues relative to any comparative period in 2012 and 2011. However, less than favourable conditions, including impacts on our business as a result of the strength of the Swiss franc against the Euro, overcapacity in the banknote paper industry and increased competition for orders continue to adversely impact the results of the Security Paper Products Segment.
The Specialty Papers Segment, which has been discontinued with the sale of the Dresden mill in April 2013, had a strong first quarter. See "Significant Developments" for an update on the sale of the Dresden mill.