November 3, 2009 / 5:40 PM / in 8 years

UPDATE 1-Catalyst Paper posts Q3 profit on one-time gain

* Q3 EPS C$0.03 vs loss C$0.01/shr last year

* Q3 adj loss C$0.05/shr

* Sales fall 48 pct

* Weak markets to weigh on Q4 results

* Shares fall 6 pct

Nov 3 (Reuters) - Canadian papermaker Catalyst Paper Corp CTL.TO posted a third-quarter profit, helped by a one-time gain, but warned that it expects weak markets to weigh on its fourth-quarter results.

“Looking to the fourth quarter and into 2010, we expect results to come under heavy pressure due to the continued weak markets, uncertainty in pricing recovery, and the negative impact of an escalating Canadian dollar,” Chief Executive Richard Garneau said in a statement.

The pulp and paper maker posted a profit of C$13.2 million, or 3 Canadian cents a share, compared with a net loss of C$1.9 million, or 1 Canadian cent a share, a year ago.

The company said net earnings included a C$33 million after-tax gain on translation of long-term U.S. dollar denominated debt.

Before items, the Richmond, British Columbia-based company posted a net loss of C$19.8 million, or 5 Canadian cents a share.

“With the exception of pulp, the best that can be said about third-quarter markets is that demand decline has slowed down,” Garneau said.

Sales fell to C$263.4 million from C$504.8 million last year.

Shares of the company were down 6 percent at 23.5 Canadian cents in midday trade Tuesday on the Toronto Stock Exchange. (Reporting by Isheeta Sanghi in Bangalore; Editing by Ratul Ray Chaudhuri)

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