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Mar 31, 2021
Mercer Q1 2021 Earnings Report
Mercer International Inc. reported increased Operating EBITDA and net income, driven by higher pulp and lumber sales realizations and lower per unit fiber costs.
Key Takeaways
Mercer International Inc. reported a strong first quarter in 2021, with Operating EBITDA increasing to $82.0 million and net income reaching $5.9 million. The company benefited from improved pulp pricing and robust lumber demand, particularly in the U.S. market. The Friesau sawmill's strong performance and effective COVID-19 protection measures contributed to the positive results.
Operating EBITDA increased to $82.0 million from $57.0 million in the first quarter of 2020.
Net income was $5.9 million (or $0.09 per share) compared to a net loss of $3.4 million (or $0.05 per share) in the first quarter of 2020.
Pulp segment operating income increased by approximately 18% to $25.3 million.
Wood products segment had record operating income of $28.0 million compared to $5.6 million in the same quarter of 2020.
Revenue by Segment
Forward Guidance
The company expects further modest pulp price improvements in the second quarter of 2021 due to stable pulp demand and reduced supply. Strong lumber demand and prices are also expected to continue in the U.S. market, with modestly improving sales realizations in the European market.
Positive Outlook
- Further modest pulp price improvements expected in Q2 2021.
- Stable pulp demand, particularly in China.
- Reduced pulp supply.
- Continuing strong lumber demand and prices in the U.S. market.
- Modestly improving lumber sales realizations in the European market.
Challenges Ahead
- Continued economic uncertainty resulting from the resurgence of the COVID-19 pandemic.
- Significant major maintenance scheduled this quarter, requiring a large number of specialty contractors.
- Widespread increase in infection rates leading to re-imposed restrictions in various countries.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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