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Mercer International Inc   (MERC)
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Price: $9.2500 $0.06 0.653%
Day's High: $9.87 Week Perf: -9.14 %
Day's Low: $ 9.15 30 Day Perf: 20.44 %
Volume (M): 431 52 Wk High: $ 10.42
Volume (M$): $ 3,989 52 Wk Avg: $8.90
Open: $9.22 52 Wk Low: $7.01



 Market Capitalization (Millions $) 616
 Shares Outstanding (Millions) 67
 Employees 1,486
 Revenues (TTM) (Millions $) 2,106
 Net Income (TTM) (Millions $) -135
 Cash Flow (TTM) (Millions $) 131
 Capital Exp. (TTM) (Millions $) 241

Mercer International Inc

Mercer Inc. is a corporation organized under the laws of the State of Washington. Its common stock is quoted and listed for trading on the NASDAQ Global Select Market (MERC) and the Toronto Stock Exchange (MERC.U).
We are one of the world’s largest producers of “market” NBSK pulp, which is pulp that is sold on the open market. Our size provides us increased presence, better industry information in our markets and close customer relationships with many large pulp consumers. We operate two modern and highly efficient mills in Eastern Germany and one mill in Western Canada and have our headquarters in Vancouver, Canada. We are the sole NBSK pulp producer, and the only significant market pulp producer in Germany, which is the largest pulp import market in Europe. We are able to supply the growing pulp demand in China both through our Canadian mill’s ready access to the Port of Vancouver and through our Stendal mill’s existing logistics arrangements. In addition, as a result of the significant investments we have made in co-generation equipment, all of our mills generate and sell a significant amount of surplus “green” energy to regional utilities. We also produce and sell “tall oil”, a by-product of our production process, which is used as both a chemical additive and as a “green” energy source.

Our mills are some of the most modern and newest NBSK pulp mills in Europe and North America. We believe the relative age, production capacity and electrical generation capacity of our mills provide us with certain manufacturing cost and other advantages over many of our competitors. We believe our competitors’ older mills do not have the equipment or capacity to produce or sell surplus power or chemicals in a meaningful amount. In addition, since our mills are relatively new, they benefit from lower maintenance capital requirements and higher efficiency relative to many of our competitors’ mills.

Our modern mills generate electricity, which is surplus to their operating requirements, providing our mills with a stable revenue source unrelated to pulp prices. Additionally, our German mills generate tall oil from black liquor, which is sold to third parties for use in numerous applications including bio-fuels. Since our energy and chemical production are by-products of our pulp production process, there are minimal incremental costs and our surplus energy and chemical sales are highly profitable.

Pulp is used in the production of paper, tissues and paper-related products. Pulp is generally classified according to fiber type, the process used in its production and the degree to which it is bleached. Kraft pulp, a type of chemical pulp, is produced through a sulphate chemical process in which lignin, the component of wood which binds individual fibers, is dissolved in a chemical reaction. Chemically prepared pulp allows the wood’s fiber to retain its length and flexibility, resulting in stronger paper products. Kraft pulp can be bleached to increase its brightness. Softwood kraft pulp is noted for its strength, brightness and absorption properties and is used to produce a variety of products, including lightweight publication grades of paper, tissues and other paper-related products.


There are two main types of bleached kraft pulp, being softwood kraft made from coniferous trees and hardwood kraft made from deciduous trees. Softwood species generally have long, flexible fibers which add strength to paper while fibers from species of hardwood contain shorter fibers which lend bulk and opacity.
We produce and sell NBSK pulp, which is a bleached kraft pulp manufactured using northern softwood and is considered a premium grade because of its strength. It generally obtains the highest price relative to other kraft pulps. Southern bleached softwood kraft pulp is kraft pulp manufactured using southern softwood and does not possess the strength found in NBSK pulp. NBSK pulp is the sole pulp product of our mills.


Most paper users of market kraft pulp use a mix of softwood and hardwood grades to optimize production and product qualities. In 2016, market kraft pulp consumption was approximately 54% hardwood bleached kraft and 42% softwood bleached kraft, with the remainder comprised of unbleached pulp. Over the last several years, production of hardwood pulp, based on fast growing plantation fiber primarily from Asia and South America, has increased much more rapidly than that of softwood grades, based on fiber that has longer growth cycles. Hardwood kraft generally has a cost advantage over softwood kraft as a result of lower fiber costs, higher wood yields and, for newer hardwood mills, economies of scale. As a result of this growth in supply and lower costs, kraft pulp customers have substituted some of the pulp content in their products to hardwood pulp.


Counteracting customers’ ability to substitute lower priced hardwood pulp for NBSK pulp is the requirement for strength and formation characteristics in finished goods. Paper and tissue makers focus on larger paper machines with higher speeds and lower basis weights for certain papers which require the strength characteristics of softwood pulp. Additionally, where paper products are lightweight or specialized, like direct mail, magazine paper or premium tissue, or where strength or absorbency are important, softwood kraft forms a significant proportion of the fiber used. As a result, we believe that the ability of kraft pulp users to further substitute hardwood for softwood pulp is limited by such requirements.


Kraft pulp can be made in different grades, with varying technical specifications, for different end uses. Softwood kraft pulp is valued for its reinforcing role in mechanical printing papers and is sought after by producers of paper for the publishing industry, primarily for magazines and advertising materials. Softwood kraft pulp is also an important ingredient for tissue manufacturing and tissue demand tends to increase with living standards in developing countries. NBSK pulp produced for reinforcement fibers is considered the highest grade of kraft pulp and generally obtains the highest price.

Kraft pulp is a globally traded commodity and prices are highly cyclical and volatile. Kraft pulp prices are generally quoted in dollars. Pricing is primarily influenced by the balance between supply and demand, as affected by global macro-economic conditions, changes in consumption and capacity, the level of customer and producer inventories and fluctuations in exchange rates. Generally, we and other producers consider global NBSK pulp supply and demand to be evenly balanced when world inventory levels are at about 30 days’ supply.



   Company Address: Suite 1120 Vancouver 0 BC
   Company Phone Number: 684-1099   Stock Exchange / Ticker: NASDAQ MERC
   


Customers Net Income fell by MERC's Customers Net Profit Margin fell to

-9.72 %

11.77 %

• Customers Performance • Customers Expend. • Customers Efficiency • List of Customers


   

Stock Performances by Major Competitors

5 Days Decrease / Increase
     
CLW   -1.47%    
GLT   -9.79%    
IP   -3.29%    
EBF        1.16% 
LPX        1.23% 
MTX   -0.47%    
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Mercer International Inc

Mercer International Inc Faces Turbulent Third Quarter with Significant Losses and Revenue Decline



Mercer International Inc, a leading international pulp and paper company, has experienced a turbulent third quarter in 2023. The company's recent financial results indicate significant losses and a notable decline in revenue. These developments have had a profound impact on the company's share performance, which has witnessed a downtrend in recent times. This article aims to interpret the implications of these findings and assess their potential impact on the company going forward.
1. Deteriorating Financial Performance:
During the third quarter of 2023, Mercer International Inc recorded a per-share loss of $0.39. This figure represents a sharp decline from the $1.00 per share profit reported in the corresponding period last year. While there is a positive improvement from the previous reporting period, where EPS was -$1.48, the overall trend is far from encouraging. These numbers suggest that the company is grappling with multiple challenges, negatively impacting its bottom line.

Mercer International Inc

MERC's Q2 2023 Slump: Declining Demand Triggers Revenue Regression and Increased Loss



Mercer International Inc, a global leader in the pulp and paper industry, recently published their financial results for the April to June 30, 2023 period. Unfortunately, the numbers presented a challenging picture for the company as lower demand in the industry led to fading revenue and higher losses. This article will delve into the financial figures and provide context to understand the current position of Mercer International Inc.
Revenue Decline and Increased Losses:
During the April to June 30, 2023 financial period, Mercer International Inc reported a worrying loss per share of $-1.48. This figure represents a significant drop from the previous quarter when the company posted a loss per share of $-0.46. Moreover, in the corresponding quarter of the previous year, Mercer International Inc achieved earnings of $71.372 million, highlighting the substantial decline experienced by the company.

Mercer International Inc

Paper & Paper Products Company Faces Steep -11.822% Revenue Contraction in First Quarter of 2023 Earnings Season

Mercer International Inc returns on equity (ROE) have surpassed expectations in the first quarter of 2023, with 16.28% ROE reported, above the company's average of 15.24%. This is a positive result for investors, despite a decline in net income relative to the previous period.
However, it should be noted that within the Paper & Paper Products industry, three other companies reported higher ROE figures. The company's total ranking has also deteriorated compared to the fourth quarter of 2022, falling from 305 to 350.
The first quarter of 2023 earnings season saw Mercer International Inc slipping into a shortfall of $-0.46 per share, compared to $1.34 a year ago. Earnings per share also fell from $0.30 per share in the previous quarter. The company's revenue has receded considerably by -11.822%, with $522.67 million reported, compared to $592.74 million in the corresponding quarter a year ago. Sequentially, revenue deteriorated by -10.357% from $583.06 million.






 

Mercer International Inc's Segments
 
 
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