RICHMOND, B.C. - Catalyst Paper (TSX:CTL) said Thursday it lost $368.4 million in its latest quarter, hit by costs related to the closure of its Elk Falls mill and paper recycling division.
RICHMOND, B.C. - Catalyst Paper (TSX:CTL) said Thursday it lost $368.4 million in its latest quarter, hit by costs related to the closure of its Elk Falls mill and paper recycling division.
The company said the loss amounted to 96 cents per share in its second quarter compared with a loss of $1.9 million or a penny per share a year ago.
Sales totalled $299.4 million, down from $300.7 million.
Included in the quarter was $302 million in after-tax impairment and closure costs.
"Product pricing and demand recovered slightly from recent troughs which nudged sales up," president and chief executive Kevin Clarke said in a statement.
"However, modest market recovery will not be enough to stem our losses and we took the tough step to permanently close two high-cost operations in a continued effort to future-focus our business and strengthen cash and balance sheet fundamentals."
Catalyst announced earlier this month it was permanently closing its Elk Falls paper mill near Campbell River, B.C., and its paper recycling operation in Coquitlam, B.C.
The Elk Falls mill has been indefinitely curtailed since 2009, while the paper recycling operation was indefinitely idled in February.
About 100 Elk Falls employees were affected by the closure, while all of the paper recycling employees were laid off earlier this year.
The Elk Falls mill began operation in 1952, and at its peak, produced 784,000 tonnes of pulp, paper and kraft paper annually.
Catalyst also announced Thursday that Benjamin Duster, a board member since December 2007 and former chairman of Algoma Steel, will takeover as chairman at the end of the month.
He replaces Michel Desbiens who has served as a director since 2006 and as chairman since 2007.
Also leaving the board is Amit Wadhwaney of Third Avenue Management.
Catalyst Paper has five mills in British Columbia and Arizona.