Weyerhaeuser Reports loss for Forth Quarter

The paper industry is beginning to report results for the forth quarter. Weyerhaeuser joins International Paper in reporting a loss. Weyerhaeuser had a net loss of $211million. Management sited capacity curtailment and cutting jobs were primary reasons. Certainly, higher energy costs did not help!
Paper.com has all the Weyerhaeuser grades, available and ready for immediate shipment.

Thoughts for 2006

Paper and Packaging Magazine recently published results of a survey distributors commented on for 2006 forecast for paper.
-More optimistic than 2005 - unit growth 4-10%
-Most anticipate increase price for paper
-When asked about Internet sales - majority believed 'here to stay-and will grow' but many admit to 'only dabbled at web sales"
-Largest concerns for 2006
-Maintaining profit margins
-Inability to pass all paper price increases to end-user
-Increased cost of energy, making deliveries more expensive
-Foreign competition

Central Lewmar and Strategic Paper sold

Central Lewmar and Strategic Paper, two large, east coast paper merchants, were recently sold to 5Star and Chrysalis Capital. The new company will have sales of $800million. Leslie Stern will run the company.

FiberMark Out of Bankrupcy

FiberMark Paper emerged from chapter 11 as a private company. Silver Point Capital is the majority owner.

Koch Completes Acquisition of Georgia Pacific

Koch successfully completed the announced acquisition of the paper assets of Georgia Pacific. The name Georgia-Pacific will continue to be used. Koch Industries completed this $21billion deal in late December.

Weyerhaeuser shuts down 2 Paper Machiines

Weyerhaeuser will move forward on their announcement of permanently closing 2 paper machines. Both machines are located in Canada - one in Dryden, Ontario - producing 155,000 tons and the second located in Prince Albert, Saskatchenwan - producing 280,000 tons.

Uncoated Papers Finally Enjoy Strength

The year 2005 was not kind to uncoated printing and business/ copy papers. Demand continued to shrink, losing ground to electronic communication, imports, and high bright groundwood grades. The market attempted several unsuccessful price increases, inspite of the producers managing supply through curtailing equipment. Shipments for 2005 were off 4% versus 2004. The start of 2006 tells a different story. Both rolls and cut sheets will increase in price. International Paper and Weyerhaeuser (#1 and #2) with 45% of the market share are standing firm on this increase and #3-Domtar has also announced a price increase.

International Paper Posts Loss for 4Q2005

International Paper announced its 4th quarter results for 2005 with a $77million loss. Increased costs (primarily energy) were sited as cause for loss. Increased oil expenses effected transportation, chemicals as well as manufacturing expenses.

Domtar continues to make Reductions

Domtar, Canada's largest printing and writing paper producer , announced it would close a mill and shutter 2 paper machines. Management is also considering divesting of a paper mill. Permanent closure includes #10 and #11 paper machine in Cornwall, Ontario paper mill and the Vancouver, BC mill will be offered for sale. Total capacity involved includes 265,000 tons of uncoated and coated printing grades as well as 160,000 tons of market pulp.