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Mar 31, 2024
Mercer Q1 2024 Earnings Report
Mercer International Inc. reported first quarter results and announced quarterly cash dividend.
Key Takeaways
Mercer International Inc. reported a net loss of $16.7 million for Q1 2024, with an Operating EBITDA of $63.6 million. The results were positively impacted by improved pulp and lumber pricing, lower fiber and production costs, and no planned maintenance downtime.
Operating EBITDA increased to $63.6 million, up from $27.5 million in Q1 2023.
Net loss was $16.7 million, including a non-cash loss on disposal of $23.6 million related to the Cariboo Pulp and Paper joint venture.
Pulp segment operating income increased by approximately 36% to $17.4 million.
Solid wood segment had an operating loss of $13.7 million, improved from $27.1 million in the same quarter of 2023.
Revenue by Segment
Forward Guidance
The company expects pulp pricing to continue to improve in the second quarter of 2024, led by Europe and North America. Stable U.S. and European lumber prices are expected, while mass timber prices are anticipated to remain generally stable.
Positive Outlook
- Pulp pricing is expected to continue to improve, led by Europe and North America.
- Stable pulp prices are expected in China.
- Stable U.S. and European lumber prices are expected.
- Mass timber prices are expected to remain generally stable.
- Per unit fiber costs are expected to decrease in the second quarter of 2024 as a result of continued stable supply.
Challenges Ahead
- Lumber demand remains weak due to continued high interest rates and economic uncertainty.
- The company is planning for a total of 35 days of maintenance downtime at its pulp mills in the second quarter of 2024.
- Lumber prices are expected to be generally flat in the second quarter as demand continues to be impacted by high interest rates and economic uncertainty.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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