GREY:FTPLF - Post by User
Comment by
OptsyEagleon Aug 11, 2011 10:30am
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Post# 18930533
RE: EPS Q2
RE: EPS Q2Fortress Paper adjusts their reported earnings by subtracting out the foreign exchange gains and losses. I believe that since they own a lot of assets in Europe but report in Canadian dollars they need to adjust the value of those European assets, that they have on their books, to the change in currency valuation as they move up and down from each other. In order to balance the books they then need to report a foreign exchange gain or loss. This is where the profit came from. It was non cash and for the most part irrelevant profit since FTP is not planning on selling these assets, so for clarity, they subtract it out.
Again Q2 and the upcoming Q3 are almost irrelevant from an earnings point of view. What was relevant was the progress on Thurso and the ability to control expenses and improve margins, like they did.