Mercer Timber Products sees strong financial performance28 February 2022
International forest products group Mercer International’s wood product operations recorded stellar results in Q4, 2021.
The company’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.
In Q4, 2021 the group recorded a wood products segment operating income of US$19.9m, a 54% growth over the same quarter of 2020 primarily due to higher lumber sales, partially offset by higher per unit fibre costs.
Average lumber sales realizations increased by approximately 48% to US$689 per Mfbm in the fourth quarter of 2021 from approximately US$467 per Mfbm in the same quarter of 2020 primarily due to higher pricing in the European market partially offset by lower pricing in the US market.
Wood products revenue totalled US$71.9m in Q4 (2020 Q4: US$48.5m).
In the comparative quarter of 2020, per unit fibre costs were low as a result of a large supply of beetle damaged wood. As producers have been working through such wood, more green wood is now being harvested.
“As a result of utilizing more green wood and continuing strong sawlog demand, current quarter per unit fibre costs increased by approximately 90% from the same quarter of 2020,” the company said.
“We currently expect modestly increasing per unit fibre costs in the first quarter of 2022 due to continued strong demand.
“With respect to our wood products segment, in the first quarter of 2022 we currently expect lumber demand to remain steady in all markets with modest price improvements in the US market.”
Mercer operates several pulp mills in in Germany and North America, as well as cross-laminated timber (CLT) operation in Washington State.
Group-wide, operating EBITDA for Mercer International in 2021 increased to a record US$478.8m from US$192.7m in 2020.
Mercer International has plans to build another sawmill in Arneburg, Saxony-Anhalt, Germany, located near the Mercer Stendal pulp mill, one of Mercer’s five pulp mills worldwide.
PICCAP: Mercer Timber Products recorded strong results in 2021 and plans to build another sawmill