US manufacturing activity dropped in December to lowest point in over a year

Overview: •Q3 2021 reported operating income of $331 million driven by solid lumber segment results despite a sharp decline in North American lumber prices from prior quarter all-time highs • Record quarterly earnings for the Company’s European lumber operations • Shareholder net income of $210 million, or $1.68 per share • Cumulative cash deposits of $656 million on countervailing and anti-dumping duties at September 30, 2021. The Company reported operating income of $331.0 million for the third quarter of 2021 driven by solid earnings in both the lumber and pulp and paper segments. Compared to the second quarter of 2021, current quarter reported operating income was down $710.3 million, reflecting a material decline in lumber segment earnings from an all-time high in the previous quarter, and, to a lesser extent, moderately lower pulp and paper segment earnings.

For the second quarter ended 30 June 2022 Lecta had revenue of €529.4 million versus €310.7 million in the second quarter ended 30 June 2021, an increase of €218.7 million or +70%. The costs of raw materials and consumables used increased by €75.7 million, or +18.6%, from €155.9 million in 2Q2021 to €231.6 million in 2Q2022, and as a percentage of revenue they decreased from 50.2% in 2Q2021 to 43.7% in 2Q2022. The absolute increase was mainly attributable to higher produced and purchased volumes, and to an increase in the average consumption price of pulp of 193€/t of paper. Labor costs increased by €5.2 million, or +11.9%, from €43.4 million in 2Q2021 to €48.5 million in 2Q2022, and as percentage of revenue they decreased from 14.0% in 2Q2021 to 9.2% in 2Q2022. EBITDA increased by €35.9 million, from €11.6 million in 2Q2021 to €47.5 million in 2Q2022. This increase was essentially due to higher sales of paper in volume and higher sales prices, partly offset by higher production cost and higher labor and fixed costs.

Due to recent cost changes and market conditions French Paper is announcing our first price increase since 3-3-14, over three and a half years. This increase consists of $5/cwt for Glo-Tone and $4/cwt across all other grades, with equivalent changes made among envelope items. All changes will apply to orders placed after December 15th. Along with these pricing changes we have begun the discontinuation of our Mod-Tone grade and will sell remaining items as inventory is available.