Mercer International Issues Blowout Earnings, Stock Jumps 13% (MERC)

Mercer International MERC reported strong Q4 EPS today of EUR 0.63 versus Street consensus of EUR 0.47 consensus. Mercer International Inc. MERC today reported strong results for the fourth quarter and record results for the year ended December 31, 2010. Operating EBITDA in the fourth quarter of 2010 was EURO64.6 million ($87.8 million), compared to EURO23.5 million ($34.7 million) in the last quarter of 2009 and EURO65.5 million ($84.7 million) in the third quarter of 2010. In 2010, Operating EBITDA significantly increased fivefold to a record EURO224.0 million ($297.3 million) from EURO41.4 million ($57.7 million) in 2009. Operating EBITDA is defined on page 4 of this press release and reconciled to net income (loss) on page 8 of the financial tables in this press release. Mercer reported net income of EURO35.3 million ($48.0 million), or EURO0.84 ($1.14) per basic share, for the fourth quarter of 2010, compared to EURO2.7 million ($4.0 million), or EURO0.08 ($0.12) per basic share, in the last quarter of 2009 and EURO46.1 million ($59.6 million), or EURO1.17 ($1.51) per basic share, in the third quarter of 2010. For 2010, we reported net income of EURO86.3 million ($114.5 million), or EURO2.24 ($2.97) per basic share, compared to a net loss of EURO62.2 million ($86.7 million), or EURO1.71 ($2.38) per basic share, in 2009.