Norampac Continues ...its Good Performance
MONTREAL, April 22 - /CNW/ - Norampac Inc. ("Norampac") reports net
earnings of $16 million for the first quarter of 2002, compared to restated
net earnings of $6 million ($18 million before restatement) for the same
quarter in 2001. The 2001 results were restated to apply the new CICA
guidelines on Foreign Currency Translation, which eliminate the deferral and
amortization for unrealized exchange gains or losses.
Net sales for the first quarter were $275 million, compared to
$253 million for the same quarter in 2001. The increase in net sales for the
first quarter is mostly attributable to additional volume from the New-York
and Leominster converting facilities and from the Burnaby British Columbia
primary mill. Shipments of corrugated containers, before the new facilities
were acquired, were up 2% in the first quarter 2002 compared to the same
quarter in 2001 and were marginally up compared to the fourth quarter 2001.
Earnings before financial expenses, taxes depreciation and amortization
(EBITDA) amounted to $50 million in the first quarter, compared to $53 million
for the corresponding quarter in 2001. The reduction is mainly attributable to
12% decline in containerboard selling price compared to first quarter of 2001.
During the quarter, market related downtime totaled 32,000 short tons or
8.7% of the Company's North American primary mill capacity.
Commenting on the quarterly results, Mr. Alain Lemaire, President and
Chief Executive Officer, said: "The quarter includes the results from our most
recent converting acquisitions in the American northeast which contributed
positively to our earnings." He added: "Despite lower selling prices, the
EBITDA margin is almost at the same level than the fourth quarter, even though
the first quarter is the seasonally slowest quarter of the year. Overall, I am
pleased with this quarter's results."
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HIGHLIGHTS
- Acquisition of a converting facility in Leominster MA, with an
annual production of 1 billion square feet;
- Increased shipments of corrugated products mainly due to the
additional facilities and acquisitions;
- Reduction of net selling price of 12% for containerboard and 3% for
corrugated products compared to first quarter 2001;
- Market related downtime of 32,000 short tons during the first
quarter, compared to 36,000 tons in 2001.
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As per the outlook for the remaining of 2002, Mr. Lemaire stated: "I
expect that the economic environment for containerboard and corrugated
products will improve in the second half of this year and with our recent
acquisitions and our continuous effort to reduce costs, we have put ourselves
in a strong position to benefit from the expected economic recovery."
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Good luck to all