SAINT-FELICIEN, Que. — SFK Pulp Fund has cut its fourth-quarter loss to $142,000 from a year-earlier $8.4-million and posted a full-year profit on higher sales revenue after key acquisitions.
In 2006, total sales reached $312.4-million, up sharply from $236.2-million in 2005 as acquisition of the Fairmont and Menominee pulp mills on Oct. 31, 3006, contributed $38.7-million. Improved pulp market conditions accounted for $37.5-million.
The full-year profit was $1.3-million, versus a loss of $5.2-million in 2005.
Sales revenue for the fourth quarter ended Dec. 31 jumped to $110.5-million from $56.5-million.
“We are pleased with our results of the last quarter of 2006, which include two months of our recently acquired Fairmont and Menominee RBK pulp mills,” CEO Andre Bernier said in a release.
“During the quarter, we benefited from strong market conditions in both RBK and
NBSK segments, resulting in a sales volume in excess of 151,000 tonnes and an EBITDA (pre-tax profit) margin of 13 per cent.
“The three mills also performed as planned during the quarter, with a total production of more than 150,000 tonnes.”
SFK Pulp operates the Saint-Felicien, Fairmont and Menominee mills and employs about 550 people.
The mills in Fairmont, W.Va., and Menominee, Mich., have a combined annual production capacity of 360,000 tonnes, making air-dried market recycled bleached kraft (RBK) pulp
and primarily supply RBK pulp to manufacturers of uncoated freesheet, commercial and away-from-home tissue and coated paper in the United States.
The Saint-Felicien, Que., mill about 450 kilometres north of Montreal has an annual production capacity of 375,000 tonnes of NBSK pulp (northern bleached softwood kraft pulp) and supplies it to various sectors of the paper industry in Canada, the United States and in Europe for use in specialty products.
