Mercer International Q2 Misses Revenue by 9%, Posts $76M Net Loss
MERC sits 27% above its 52-week low of $0.53.
Summary
Mercer International's Q2 revenue came in at $460M, well below the $505M consensus, while the net loss narrowed to $76M from a wider Q1 loss. A $29M non-cash inventory impairment on pulp and fiber, driven by low pulp prices and high fiber costs, pushed operating EBITDA to -$21M. The company realized $13M in cost savings under its restructuring program, but elevated German fiber costs and expected modest pulp price declines in Q3 keep pressure on margins. This follows the extended Rosenthal mill shutdown and the Torgau workforce reduction announced in June and July, painting a picture of ongoing operational strain. With the stock at $0.67 and a Nasdaq non-compliance notice already in hand, the weak quarter and cautious outlook reinforce the distressed thesis.
At the time of this announcement, MERC was trading at $0.67 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $45.2M. The 52-week trading range was $0.53 to $3.38. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.