Mercer International Inc. reported strong results for the 3Q ended September 30, 2018 due to higher pulp sales realizations. Operating EBITDA in the current quarter was $86.7 million compared to $64.3 million in the 3Q 2017 and $60.5 million in the 2Q 2018.
For the 3Q 2018, net income was $41.2 million, or $0.63 per share, compared to net income of $21.1 million, or $0.33 per basic and $0.32 per diluted share, for the 3Q 2017 and $16.8 million, or $0.26 per share, in the prior quarter of 2018.
In the 3Q 2018 operating income increased to $63.3 million, or by approximately 69% from $37.5 million in the prior quarter of 2018, and approximately 52% from $41.7 million in the same quarter of the prior year. The increase in the current quarter over the prior quarter is primarily due to lower maintenance costs at its pulp mills and higher pulp sales realizations.
David M. Gandossi, the CEO, stated: “Our agreements to acquire Daishowa‐Marubeni International Ltd. and the Santanol sandalwood business reflect our disciplined approach to acquisitions and capital allocation. Both advance our long‐term value creation strategy to deliver sustainable profitable growth. These businesses leverage our core competencies and complement the world‐class assets that comprise Mercer’s platform for growth.”
Mercer International Inc. is a global forest products company with operations in Germany and Canada with consolidated annual production capacity of 1.5 million tonnes of NBSK pulp and 550 million board feet of lumber.