Catalyst Paper Cuts Loss Despite Weak Markets

Subsequent to quarter-end, Catalyst announced Kevin J. Clarke's decision to step down as president and CEO at mid-year and a search for his successor is underway.

Market Conditions

Benchmark prices and North American demand were down for all paper grades. Demand for lightweight coated declined by 5.3 percent while remaining flat for uncoated mechanical. Directory demand was down 15.3 percent and newsprint demand fell by 10.2 percent. Our newsprint sales volumes were up over a year ago in part due to customer interest in Marathon Lite, while sales volumes for our specialty grades declined in the quarter. Lower sales volumes for paper were partly due to a production shortfall resulting from certain unforeseen maintenance events in the quarter.