Q2 2024 Mercer International Inc Earnings Call Transcript
Key Points
- Mercer International Inc (MERC) reported significantly improved pulp pricing in Q2, with notable increases in all major markets.
- The mass timber business showed strong performance, with a 54% increase in production from Q1.
- The company successfully executed on tight deadlines in the mass timber segment, resulting in positive operating results.
- Mercer International Inc (MERC) maintained stable fiber costs for both pulp and solid wood segments in Q2.
- The company has a strong liquidity position with $581 million, including $263 million in cash and undrawn revolvers.
- Q2 EBITDA was significantly lower at $30 million compared to $64 million in Q1, primarily due to 37 days of planned major maintenance downtime.
- The company recognized a non-cash goodwill impairment of $34 million related to the Torgau facility due to ongoing weakness in the European lumber pallet and biofuel markets.
- Total pulp sales volumes decreased by 132,000 tonnes to 433,000 tonnes, driven by lower production from planned maintenance downtime and the disposition of the Cariboo Mill.
- Lumber production and sales volumes were down in Q2, reflecting lower production and weak market conditions.
- Mercer International Inc (MERC) reported a consolidated net loss of $68 million for Q2, compared to a net loss of $17 million in Q1.
Good morning, and welcome to Mercer International's second quarter 2024 earnings conference call. On the call today is Juan Carlos Bueno, President and Chief Executive Officer of Mercer International; and Robert [Richard] Short, CFO and Secretary. I will now hand the call over to Richard Short.
Good morning, everyone. Thanks for joining us today. I'll begin by touching on the financial and operating highlights of the second quarter before turning the call over to Juan Carlos to provide further color into the markets, our operations and our strategic initiatives. Also for those of you that have joined the call today by telephone, there is presentation material that we have attached to the Investors section of our website.
Before turning to our results, I would like to remind you that we will be making forward-looking statements in this morning's conference call. According to the Safe Harbor provisions of the Private Securities Litigation Reform Act of
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
