Koehler Paper to increase thermal paper prices by 12-15% from April 1

The business, a producer of coated woodfree fine papers and packaging board based in Lenningen, initiated insolvency proceedings yesterday (30 January) at the local court of Esslingen. The 340-staff company,…

The fourth quarter was shaped in part by the annual maintenance shutdowns at our two mills, which proceeded smoothly and as planned. Consequently, all three of our major investment projects are now up and running. The underlying performance showed improvement compared with the corresponding quarter of the previous year, despite the upward trend in raw material costs. Demand for chemical softwood pulp remains relatively stable in our key markets, with many customers increasing volumes, especially in our niche segments. We continue our structured approach to gradually developing Rottneros in line with our niche strategy, prioritizing safety, sustainability, and profitability. Production and deliveries for the Group declined compared with the same quarter last year, mainly as a result of the annual maintenance shutdowns carried out at both mills. In 2023, Rottneros Mill scheduled its maintenance shutdown in September. Excluding temporary items, primarily related to the sale of emission allowances, our underlying EBIT rose by approximately 20 MSEK, despite the negative effect of higher wood costs and maintenance shutdowns on comparability. Fixed costs totaled 240 MSEK, compared with 220 MSEK in the same quarter last year.

The Company recorded third quarter revenue of $870 million, an increase of 29% year over year, primarily driven by higher TiO2 and zircon volumes and higher average selling prices across all products. Revenue from TiO2 sales was $682 million, an increase of 26% driven by a 13% increase in volumes and a 12% increase in average selling prices on both a US dollar and local currency basis. Sequentially, TiO2 volumes declined 10%, at the low end of guidance, and average selling prices increased 4% on a local currency basis or 3% on a US dollar basis. Zircon revenue increased 107% to $116 million driven by an 81% increase in volumes and a 13% increase in average selling prices. Sequentially, zircon volumes declined 14%, due to higher sales from inventory in the second quarter, while average selling prices increased 10%. Revenue from feedstock and other products was $72 million, which represented a 5% decrease, due to no external feedstock sales in the quarter compared to the prior year, partially offset by increased pig iron revenue from higher average selling prices. Net income attributable to Tronox in the third quarter 2021 of $111 million included non-recurring costs primarily related to debt extinguishment totaling $4 million or $0.03 per diluted share. Excluding these items, adjusted net income attributable to Tronox (non-GAAP) was $115 million, or $0.72 per diluted share.