April 29, 2009 / 6:53 PM / 9 years ago

UPDATE 1-Fraser Papers Q1 loss wider than expected

* Q1 shr loss $0.33 vs loss est of $0.22

* Q1 rev fell 13 percent

* To continue evaluation of lumber mill operations

* Says needs additional funding over next 12 months

April 29 (Reuters) - Fraser Papers Inc FPS.TO posted a wider-than-expected quarterly loss, hurt by a fall in demand for kraft pulp and continuing low lumber prices.

The company, which said lumber prices would remain depressed for the balance of 2009, will continue evaluating the lumber mill operations against the chip requirements of its East Papers operations.

Fraser Papers, which repaid $18.1 million under its revolving credit facility in the quarter, said it was pursuing refinancing options for $25 million that it has under a one-year term loan due in September.

For the first quarter, it posted a loss of $16.7 million, or 33 cents a share, compared to a loss of $19.1 million, or 44 cents a share, a year-ago. Revenue fell over 13 percent to $156.1 million. [ID:WNAB0296]

Shipments of northern bleached hardwood kraft pulp from the company’s pulp mill in Thurso, Quebec, were down 31 percent from a year earlier.

Fraser Papers said it needed an additional $32.3 million in funding over the next 12 months for pension and other employee benefit obligations.

Shares of the company were trading at 50 Canadian cents Wednesday afternoon on the Toronto Stock Exchange. (Reporting by Deepti Govind in Bangalore; Editing by Anil D’Silva)

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