VANCOUVER, Feb. 13 /PRNewswire-FirstCall/ - Catalyst Paper (TSX:CTL - News) posted a net loss of $31.6 million ($0.15 per common share) on sales of $1,714.6 million during 2007. This compared with a net loss of $15.9 million ($0.07 per common share) on sales of $1,882.5 million in 2006. The company posted an operating loss of $149.4 million for the year, compared to operating earnings of $3.9 million in 2006.Catalyst continued to realize significant benefits over the course of the year from its now long-standing focus on cost reduction. Wide-ranging workforce restructuring initiatives were announced during 2007, including a 15 per cent staffing reduction, relocation of the head office from Vancouver to Richmond, and the consolidation of some mill support functions in Nanaimo.
Implementation was substantially completed at the end of the year, entailing $58.3 million in restructuring costs with annual savings estimated at approximately $67 million. Several other initiatives, including product, grade and customer optimization and productivity enhancements, brought year-over-year realized performance improvements to a total of $81 million.
"We're pleased with our demonstrated ability to deliver performance improvement," says President and CEO Richard Garneau. "2007 was a year of decisions affecting our employees, but these actions were needed to position the company to return to profitability.
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