Richmond-based Catalyst Paper Corp. (TSX: CTL) posted a net loss of $974 million in 2011, the company announced Thursday.
Reasons for the loss, the company said, included "asset impairments on Canadian and Arizona-based operations," as well as capital restructuring costs, a foreign exchange lost and fire-related outages at the Snowflake and Powell River mills.
"We faced formidable economic and currency headwinds through 2011 made worse by the fourth-quarter drop-off in pulp prices and a weaker five-year paper and pulp industry forecast released in February 2012," said Kevin Clarke, Catalyst president and CEO.
The company posted sales of $1,261.5 million in 2011, up slightly from 2010 sales of $1.228.6 million.
Clark added that North American paper markets and world pulp markets weakened in the last quarter of 2011.
The company carried higher inventory levels forward into 2012 for most paper grades, as Catalyst's production curtailments struggled to keep pace with the migration from print to digital media.
"We expect little if any improvement over the short term in what are persistently difficult markets," Clark said.
"With a challenging debt load, cash constraints and difficult trade credit terms to contend with, filing for creditor protection became inevitable when a consensual recapitalization agreement with noteholders could not reached by January 31, 2012."
Catalyst filed for creditor protection after a January 29 union vote halted the company's ability to proceed with a recapitalization transaction.
