Mercer reports Q2 EPS ($1.01), consensus (42c)

Reports Q2 revenue $499.38M, consensus $482.5M. Juan Carlos Bueno, CEO, stated, “The second quarter was another improved quarter for our pulp segment as we continued to benefit from strengthening markets. Despite lower pulp sales volumes primarily stemming from previously announced scheduled downtime and the disposal of CPP, cash flow from operations improved significantly in the second quarter of 2024. This improved aggregate liquidity allowed us to reduce borrowings by approximately $45M under our revolving credit facilities during the quarter. In the second quarter, pulp prices continued to improve in all key markets due to strengthening demand and supply-side disruptions. As these supply-side disruptions ease and we enter into a period of traditionally lower seasonal demand, we currently expect pulp prices to soften slightly in the third quarter of 2024. Lumber pricing was relatively flat in the second quarter of 2024 compared to the first quarter of 2024 due to continued weakness in both the U.S. and Europe. We currently expect lumber prices to remain relatively steady in the third quarter as demand continues to be impacted by the high interest rate environment and economic uncertainty… We are seeing the positive impact of strong pulp prices and stable costs in our operating results. Our solid wood segment continues to be negatively impacted by the high interest rate environment, but we remain committed to continue making strategic investments in this segment to ensure we are in a strong position as markets recover. With our strong liquidity position and the significant majority of our annual scheduled maintenance downtime completed, we currently believe we are well-positioned to realize on strengthened pulp markets going into the second half of 2024.”