Loading...
•
Dec 31, 2021
Mercer Q4 2021 Earnings Report
Mercer International Inc. reported record fourth quarter operating results driven by strong sales volumes, steady pulp and lumber pricing, and higher energy prices in Germany. The company also benefited from the settlement of a business interruption insurance claim.
Key Takeaways
Mercer International Inc. reported a strong fourth quarter with record Operating EBITDA of $164.9 million and net income of $74.5 million. The results were driven by strong sales volumes, steady pulp and lumber pricing, and higher energy prices.
Fourth quarter net income was $74.5 million and Operating EBITDA was a record $164.9 million.
Full year 2021 net income was a record $171.0 million and Operating EBITDA was a record $478.8 million.
Strong sales volumes and steady pulp and lumber pricing drove the results.
The company benefited from the settlement of a business interruption insurance claim.
Revenue by Segment
Forward Guidance
Looking ahead to the first quarter of 2022, the company expects relatively strong NBSK markets globally, steady or modestly improving hardwood prices, and steady lumber demand with modest price improvements in the U.S. market.
Positive Outlook
- Relatively strong NBSK markets globally.
- Improving sentiment and demand for pulp and paper.
- Supply interruptions in Canada and Scandinavia are supportive of a positive pricing outlook.
- Hardwood prices are expected to remain steady or improve modestly.
- Lumber demand is expected to remain steady in all markets with modest price improvements in the U.S. market.
Challenges Ahead
- Longer term new incremental supply may lead to hardwood pricing pressure.
- Global logistics bottleneck primarily with respect to North American rail traffic where pandemic related slowdowns and extreme weather have made rail service inconsistent.
- COVID-19 infections and health risks, including from variants and additional “waves” remain.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...