Fortress Global Enterprises Inc - Class A FTPLF

Tembec DP results

[fundamPhil]

The Dissolving and Chemical Pulp segment generated EBITDA of $45 million on sales of $188 million for the quarter ended June 25, 2011, compared to EBITDA of $44 million on sales of $177 million in the prior quarter. Sales increased by $11 million as a result of increased prices for dissolving pulp. During the most recent quarter, pulp shipments were equal to 92% of capacity, as compared to 93% in the prior quarter. US $ reference prices for chemical pulp increased over the prior quarter. However, currency was unfavourable as the Canadian dollar averaged US $1.033, a 1.9% increase from US $1.014 in the prior quarter. The net effect was an increase of $31 per tonne, increasing EBITDA by $2 million. Dissolving pulp prices increased by $129 per tonne, increasing EBITDA by $8 million. Favourable market conditions led to an increase in selling prices.