Asset Impairment Overshadows Catalyst Paper’s Improved Financial Results

Reduced global paper demand and increased pulp inventories in the quarter contributed to softening markets for NBSK pulp, and the average benchmark pulp price for China was down 8.7 percent from the second quarter.

Cash Flows and Liquidity

Cash flows from operations were negative $38.8 million, compared with negative $5.4 million in the same quarter a year ago. This is due primarily to an increase in non-cash working capital of $44.5 million which more than offset $5.7 million in cash flows from operations before changes in non-cash working capital.