Mercer International reports EBITDA reductions but says inflation pressures are easing20 November 2023
International forest products group Mercer International has seen its EBITDA slashed by more than two-thirds for Q3, 2023 compared to a year ago, but it has noted some easing of inflationary pressures.
Mercer’s wood product operations are focused mainly on the Mercer Timber Products sawmill (former Klausner sawmill) in Friesnau, Thuringia – which is one of Germany’s largest sawmills. It also runs Europe’s largest pallet manufacturer in Torgau, producing up to 17 million pallets annually, as well as several pulp mills in in Germany and North America, plus a cross-laminated timber (CLT) operation in Washington State.
The company reported operating EBITDA in the third quarter of US$37.5m compared to US$140.9m in the same quarter of 2022 but improving from negative US$68.7m in the prior quarter of 2023.
A Q3 net loss of US$26m was recorded, compared to a net profit of $66.7m in the same period of 2022 and a net loss of US$98.3m in Q2, 2023.
The company said its Q3 results were significantly better than Q2 due to lower fibre and production costs as inflationary pressures eased.
“Fibre costs for all our mills decreased in the third quarter from the prior quarter driven by the availability of calamity wood in Germany, our renegotiation of fibre costs for Celgar and the ramp up of our wood room at the Peace River mill,” it said.