November 1, 2010 / 9:00 PM / 7 years ago

CORRECTED - CORRECTED-UPDATE 1-Mercer posts Q3 profit on higher pulp product

(Corrects paragraph 7 to show that pulp production in the third quarter was 380,900 ADMT, not 380.9 million, and in the year-ago quarter was 345,800 ADMT, not 345.8 million)

* Q3 profit 82 euro cents vs loss 39 euro cents last year

* Q3 pulp revenue up 54 percent

Nov 1 (Reuters) - Mercer International Inc MRIu.TO MERC.O posted a third-quarter profit on higher pulp production.

Mercer, which produces market northern bleached softwood kraft (NBSK), the paper industry’s benchmark for pulp, said it is well positioned to continue to take advantage of historically strong NBSK pulp prices, as there is no scheduled downtime at its mills.

Mercer also said it expects sales of surplus energy from the completion of its Celgar energy project in British Columbia to provide the company a new, stable revenue source unrelated to pulp pricing. For the July-September quarter, the company posted net income attributable to common shareholders of 46.1 million euros ($64.03 million), or 82 euro cents a share, compared with net loss of 14.1 million euros, or 39 euro cents a share a year ago.

Mercer, which has operations in eastern Germany and western Canada, said pulp revenue rose 54 percent to 224.7 million euros.

Analysts on average were expecting earnings of 46 euro cents a share on revenue of 209.06 million euros, according to Thomson Reuters I/B/E/S.

Pulp production for the quarter was 380,900 air-dried metric tons (ADMT), compared with 345,800 ADMT last year.

Mercer shares closed at $5.41 on Monday on Nasdaq and at C$5.48 on the Toronto Stock Exchange. ($1=.7199 Euro) (Reporting by Arnika Thakur in Bangalore; Editing by Maju Samuel)

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