Catalyst stock soars on Q3 earnings

VANCOUVER - Shares in Catalyst Paper (TSX:CTL) shot up almost 20 per cent in heavy trading Wednesday, a day after the company reported a third-quarter profit that reversed a massive second-quarter loss on better paper prices and improved efficiency.

VANCOUVER - Shares in Catalyst Paper (TSX:CTL) shot up almost 20 per cent in heavy trading Wednesday, a day after the company reported a third-quarter profit that reversed a massive second-quarter loss on better paper prices and improved efficiency.

The Vancouver-area paper producer said it generated net profits of $6 million or two cents a share for the third quarter on sales of $322.3 million as the closure of two B.C. mills improved the company's efficiency.

That compared with a net profit of $13.2 million or three cents a share on sales of $266.9 million a year ago.

However, the latest financial results were a huge improvement from the 2010 second quarter, when the company posted a huge loss of $368.4 million or 96 cents a share on sales of $299.4 million.

In the second quarter, Catalyst took big impairment, severance and other closure costs of $302 million.

Those charges related to the permanent closures of the Elk Falls paper mill at Campbell River and the Paper Recycling Division at Coquitlam.

The company said its improved finances this year also reflects better paper market conditions and operational performance.

 
 
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