read it and weep
Repap reports third quarter results
STAMFORD, Connecticut, Oct. 21 /CNW-PRN/ - Repap Enterprises Inc. today
reported results for the third quarter ended September 30, 1998. Repap
recorded a lose $12.2 million ($0.02 per share) compared with a net income of
$65.2 million ($0.12 per share) in the third quarter of 1997. The third
quarter of 1998 included a loss from discontinued operations of $0.5 million
compared to a net gain from discontinued operations of $121.0 million in the
third quarter of 1997, reflecting mainly the gain on the sale of Repap USA and
Repap Manitoba Inc.
Excluding discontinued operations, Repap's loss from continuing
operations was $11.6 million for the third quarter of 1998 compared with a
loss from continuing operations of $55.8 million in the third quarter of 1997.
Revenues from operations for the third quarter of 1998 were $172.7
million, up 12% from revenues of $154.4 million in the third quarter and up 2%
from revenues of $168.8 million in the second quarter of 1998. Revenues from
coated paper were $156.3 million, up $24.5 million or 19% over the third
quarter of 1997 revenues of $131.8 million, reflecting increased pricing and
shipments of coated paper, and the favorable impact of a lower Canadian
dollar. Pulp revenues for the third quarter of 1998 were $11.0 million, down
by $5.6 million from the third quarter of 1997 revenues of $16.6 million,
reflecting lower shipments and prices. Revenues from lumber were $5.4 million
in the third quarter of 1998 compared to $6.0 million in the same period of
1997.
Repap's operating profit, excluding non-cash hedged foreign exchange
adjustments, (''EBITDA'') was $43.4 million for the third quarter to an EBITDA
of $18.6 million in the third quarter of 1997 and of $44.9 million in the
second quarter of 1998.
Revenues for the nine months ended September 30, 1998 were $504.8 million
up 14% from the $444.6 million reported for the corresponding period in 1997,
reflecting higher coated paper shipments and prices and a weaker Canadian
dollar. EBITDA for the nine months of 1998 was $133.4 million compared to
$47.3 million for the same period in 1997. Repap recorded a loss of $44.0
million ($0.06 per share) in the first nine months compared to a loss of
$112.9 million ($0.44 per share) last year. Excluding unusual charges and
discontinued operations, the loss for the first nine months of 1998 was $14.8
million compared to a loss of $129.3 million in the first nine months of 1997.
Repap Enterprises Inc. is a major producer of lightweight coated
groundwood paper with 9% of North American capacity. This high quality paper
is utilized in magazines, catalogs, inserts and commercial printing
applications. The Company's world-class coated paper complex in New Brunswick
has two modern paper machines with an annual design capacity of 492,000 tons,
a northern bleached softwood kraft pulp mill with an annual capacity of
235,000 metric tons, an integrated groundwood pulp mill with an annual
capacity of 123,000 metric tons and lumber operations with an annual capacity
of 58 million foot board measure.
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