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Sep 30, 2021
Mercer Q3 2021 Earnings Report
Mercer International Inc. reported record operating EBITDA and increased net income due to higher pulp and lumber sales realizations.
Key Takeaways
Mercer International Inc. reported a strong third quarter with record Operating EBITDA of $148.1 million and net income of $69.1 million, driven by higher pulp and lumber sales realizations. The company also started up its recently acquired cross-laminated timber facility in Spokane, Washington.
Operating EBITDA increased to a record $148.1 million.
Net income was $69.1 million (or $1.05 per basic share and $1.04 per diluted share).
Started up recently acquired cross-laminated timber facility in Spokane, Washington.
Pulp results were significantly improved over the second quarter due to less planned maintenance downtime and higher sales volumes.
Revenue by Segment
Forward Guidance
Looking ahead to the fourth quarter, the company expects steady NBSK pulp demand in Europe but a weakening market in China. For hardwood pulp, they expect negative pricing pressure. In the solid wood segment, they expect lumber demand to remain steady with modest price improvements in the U.S. and downward price pressure in Europe.
Positive Outlook
- Generally steady NBSK pulp demand in Europe.
- Lumber demand to remain steady in all markets.
- Continued modest price improvements in the U.S. market for lumber.
- Logistics issues are expected to be resolved over the coming months.
- Capital projects are designed to deliver high returns and help achieve ESG objectives.
Challenges Ahead
- Weakening market in China for NBSK pulp.
- Negative pricing pressure for hardwood pulp due to incremental supply.
- Downward price pressure in the European market for lumber.
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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