REPAP REPORTS THIRD QUARTER RESULTS
REPAP REPORTS THIRD QUARTER RESULTS MONTREAL, Nov. 6 /PRNewswire/ -- Repap Enterprises Inc. today
announced a net loss of $41.9 million ($0.81 per share) for the three months ended Sept. 30, 1991, compared to net income of $4.5 million ($0.08 per share) in 1990. Revenues were $262.5 million, down 18 percent from $321.9 million reported in 1990, as a result of depressed market conditions for both coated paper and market pulp compounded by a seriously overvalued Canadian dollar.
REPAP ENTERPRISES INC. Financial Highlights (Millions of Cdn dollars except per share data) Nine Months ended Third Quarter Second Quarter September 30 1990 1991 1991 1990 1991 Revenues $321.9 $262.5 $283.9 $920.9 $820.6 Net income (loss) 4.5 (41.9) (34.6) 12.2 (94.0) Cash flow before working capital changes 26.6 (38.6) (26.3) 92.0 (59.9) Cash from operations 33.0 (11.4) (17.4) 20.4 (17.4) Earnings (loss) per share $0.08 $(0.81) $(0.67) $0.23 $(1.81) Shipments (thousands of short tons) Coated Paper 194 179 155 502 481 Kraft Paper 35 33 31 99 93 Total Paper 229 212 186 601 574 Coated paper prices deteriorated during the third quarter. Repap's average coated paper prices declined $68 per ton compared with the third quarter of 1990 and $36 per ton compared with the second quarter of 1991. Coated paper shipments totalled 179,000 short tons, down 8 percent from the third quarter of 1990 but up 18,000 short tons or 11 percent from the second quarter in 1991. Market pulp prices declined $340 per ton in the third quarter of 1991 compared with 1990 and $105 per ton compared with the second quarter of 1991. It appears that pulp markets have now reached bottom as suggested by announced price increases of US$20 per ton in many markets. Producer inventories of chemical market pulp declined by 280,000 tons to 1.45 million tons in September due to extensive downtime combined with the highest shipments levels reached since December 1989. Interest expensed on the income statement increased by $20.1 million compared with the third quarter of 1990 as a result of higher borrowing levels and cessation of interest capitalization on all major projects during the second quarter of 1991. Total interest costs declined by $8.7 million compared with the third quarter of 1990, despite higher borrowing levels, due to the conversion of long-term debt from Canadian to US dollars. Depreciation and amortization expense increased by $3.7 million compared to 1990. During the third quarter, Repap issued US$130 million of convertible debentures and completed the final tranche of a $60 million loan facility at the New Brunswick operations. The new liquidity of approximately $210 million has been used to repay long-term debt, reduce borrowing under revolving credit facilities and to increase working capital. Repap's five-year $2.3 billion capital program, including three new world-class coated paper machines and fully modernized pulping facilities, is now complete. With modern assets, minimal capital expenditures are required in the foreseeable future. A stringent cost reduction program continues to be a major focus throughout the corporation. Repap Enterprises Inc. is an integrated forest products company with manufacturing facilities located in British Columbia, Manitoba and New Brunswick, Canada, and Wisconsin USA and an annual capacity of: 972,000 short tons of coated paper; 160,000 short tons of kraft paper; 680,000 metric tons of softwood kraft pulp; 300 million board feet of lumber. -0- 11/6/91 /CONTACT: Kathleen Cornish of Repap, 514-879-1316/ CO: Repap Enterprises Inc. ST: Quebec IN: PAP SU: ERN JT -- NY099 -- 1946 11/06/91 17:43 EST
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|Date:||Nov 6, 1991|
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