Fibrek reports net earnings of $3.8 million in third quarter

Fibrek Inc. has reported a net earning of $3.8 million in its third quarter, compared to a net loss of $14.5 million in the third quarter of 2009.

Consolidated sales reached $132.2 million, an increase of $19.4 million when compared with sales of $112.8 million in the third quarter of 2009. This increase is mainly attributable to higher pulp prices and a favourable sales mix of $39.0 million, which was partially offset by a lower sales volume of $12.2 million and an unfavourable exchange rate of $7.4 million.

Commenting on the third quarter results, Pierre Gabriel Côté, President and Chief Executive Officer, indicated: "Higher market pulp prices, more efficient mill operations and higher pulp output drove year-over-year improvements in our third quarter results. Our refinancing has strengthened our balance sheet and favourably impacted our results for the third quarter with reduced financial charges and increased flexibility in cash management. Our operational excellence initiative helped drive results in the third quarter by increasing productivity and efficiency in our mills. However, in the RBK pulp segment, these gains were largely offset by the cost of sorted office paper (SOP)."

Who is Fibrek?

Fibrek is a leading producer and marketer of high-quality virgin and recycled kraft pulp. The company has approximately 500 employees and operates three mills located in Saint-Félicien, Québec, Fairmont, West Virginia, and in Menominee, Michigan with a combined annual production capacity of 745,000 tonnes. The Saint-Félicien mill provides northern bleached softwood kraft pulp (product known as NBSK pulp) to various sectors of the paper industry in Canada, the United States and Europe, for use in the production of specialized products. The Fairmont and Menominee mills manufacture air-dried recycled bleached kraft pulp (product known as RBK pulp) and primarily supply manufacturers of fine uncoated paper, household paper for commercial and industrial uses, and coated paper in the United States.