August 2, 2012 / 9:00 PM / 7 years ago

Mercer profit falls on lower pulp prices

Aug 2 (Reuters) - Pulp producer Mercer International Inc reported a nearly 90 percent fall in its second-quarter profit on lower pulp prices and lower demand from China.

Net income attributable to common shareholders fell to 1.5 million euros ($1.82 million), or 3 euro cents per share, from 14.4 million euros, or 26 euro cents a share, a year ago.

Revenue fell 13 percent to 204.1 million euros.

“Pulp prices decreased in the second quarter of 2012 due to economic uncertainty in Europe and a softening of Chinese demand,” Chief Executive Jimmy Lee said.

Energy revenue rose 6 percent to 14.8 million euros on higher sales from its Celgar mill in British Columbia, which produces and sells renewable energy.

Mercer, which produces and markets northern bleached softwood kraft (NBSK), the paper industry’s benchmark for pulp, said average NBSK list prices fell to $837 per ADMT (air dried metric ton) in the second quarter in Europe from $1,017 per ADMT a year earlier.

NBSK is produced mainly in Canada and the Nordic countries.

Shares of Vancouver-based Mercer closed at $5.14 on Thursday on the Nasdaq.

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