Clariant, a world leader in specialty chemicals, today announced sales of CHF 1.717 billion for the first quarter of 2011 compared to CHF 1.817 billion in the previous-year period. Sales growth in local currencies amounted to 5%. Due to the appreciation of the Swiss franc against most major currencies, sales were 6% lower in Swiss francs year-on-year.

Overall trading conditions remained stable during the quarter with no restocking activities observed as in the first quarter of 2010. At the regional level, sales growth was quite uniform across all regions with growth rates of between 4% and 7%. The impact from both the disastrous earthquake in Japan and the unrest in North Africa on the business was minimal so far.

In the first quarter, Clariant continued to consistently implement its profitable growth strategy. As a result of the focus on margin management, sales prices improved 5% year-on-year. While not fully compensating for higher raw material costs yet, sales prices increased 2% sequentially with dynamics picking up towards the end of the quarter. This successful price management, lower production costs and a high capacity utilization drove the gross margin up to 29.8% from 28.7% in the same period a year ago.

Clariant further benefited from the positive impact of the implementation of its 2009/10 cost reduction initiatives. Selling, general & administrative (SG&A) costs as a percentage of sales decreased substantially to 15.0% from 16.9% in comparison to the prior-year period. The structurally lower cost base supported the margin development. As a consequence of a better gross margin and lower costs, the EBITDA before exceptional items increased to CHF 277 million, compared to CHF 235 million one year ago. The corresponding margin rose to 16.1% from 12.9% in the previous-year period. The operating profit (EBIT) margin before exceptional items improved to 13.4% from 10.1% in the same period one year ago.

The EBITDA and EBIT margins after restructuring improved to 15.1% from 7.4% and to 11.7% from 4.1% respectively, illustrating the lower restructuring and impairment expenses after completion of the 2009/10 restructuring phase.

Cash flow from operations stood at CHF 17 million, considerably lower than the CHF 159 million achieved in the previous year. After an overly tight management of working capital towards the end of 2010, inventories returned to more normalized levels, therefore negatively impacting the cash flow from operations in Q1.

Net debt increased to CHF 250 million from CHF 126 million, resulting in a gearing (net debt divided by equity) of 13% at the end of the first quarter of 2011, slightly higher than the 7% recorded at the end of 2010.

Update on Süd-Chemie acquisition

On 21 April, Clariant completed the purchase of 96.15% of the shares in Süd-Chemie from One Equity Partners and the family shareholders. The overall transaction value amounted to approximately EUR 1.9 billion (CHF 2.5 billion). A public offer to acquire the outstanding shares from Süd-Chemie minority shareholders will be initiated before the end of May 2011. Süd-Chemie will be fully consolidated as of 21 April 2011.

After closing the acquisition, Clariant started the integration process in order to achieve a quick and seamless integration of the Süd-Chemie businesses into Clariant.

As further steps in the execution of its profitable growth strategy, Clariant has acquired the North American de-icing specialist Octagon Process LLC on 19 March 2011, and the Saskatchewan, Canada-based oil services company Prairie Petro-Chem on 1 April 2011.

Outlook 2011
Starting 2011, Clariant shifted its focus to continuous improvement and profitable growth following the completion of restructuring in 2010. While the continuous improvement initiative “Clariant Excellence” will make the lower cost basis sustainable, the company is now focusing on creating value by investing in future profitable growth.

Clariant expects global economic growth to continue in 2011 but at a slower pace than in 2010. Exchange rates for the major currencies are expected to remain volatile. Growth will mainly come from the emerging markets in Asia/Pacific and Latin America. Commodity prices are expected to continue to rise in 2011, leading to an increase in raw material costs in the mid-teens.

Clariant – excluding the recently acquired Süd-Chemie – expects 2011 sales growth in local currencies in the low single-digit range. Additional benefits from the restructuring measures taken during the last two years will improve the company’s cost position, resulting in a positive impact on the operating result. The EBITDA margin before exceptional items is therefore expected to rise above the 2010 level.

Xerium Technologies, Inc. has announced a plan to refinance its current credit facilities. The purpose of the proposed refinancing is to extend the maturity, and fix the rate on a portion, of Xerium's debt while providing increased flexibility and liquidity. The proposed transaction contemplates a private placement of $240 million aggregate principal amount of senior unsecured notes as well as an approximate $285 million multi-currency senior secured credit facility. While expected to close later this month, there can be no assurance that the refinancing transaction will be consummated as described above, or at all. Completion of the refinancing transaction is subject to market, documentation and customary closing conditions.

The senior notes have not been registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any other jurisdiction. Unless they are registered, the senior notes may be offered only in transactions that are exempt from registration under the Securities Act, or the securities laws of any other jurisdiction. Accordingly, the senior notes will be offered and sold in the United States only to qualified institutional buyers and outside the United States to non-U.S. persons in compliance with Regulation S. This announcement does not constitute an offer to sell or the solicitation of an offer to buy any securities that may be offered as part of the refinancing transaction in any jurisdiction in which such an offer or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

Forward-looking statements, estimates and Disclosure Statement:

Various statements herein about Xerium's future expectations, plans and prospects are forward-looking statements which reflect Xerium's current views with respect to future events and financial performance. Statements which include the words "expect," "intend," "plan," "believe," "project," "anticipate" and similar statements of a future or forward-looking nature identify forward-looking statements for the purposes of the federal securities laws or otherwise. Actual results may differ materially from these forward-looking statements and estimates as a result of various important factors, including, without limitation, the possibility that Xerium may not be able to complete the refinancing transaction on terms acceptable to Xerium or at all and other factors discussed in Xerium's annual report on Form 10-K for the fiscal year ended December 31, 2010, and subsequent filings, all of which are on file with the SEC and are also available in the investor relations section of Xerium's website at www.xerium.com under the heading "SEC Filings." Any forward-looking statements are as of the date hereof, and Xerium has no duty to update them if its views later change, except as may be required by law.

SOURCE: Xerium Technologies Inc.

The Prince Albert Pulp Mill is open for the first time in five years and moving toward a full restart of pulp operations. Except this time, the mill will be making dissolving pulp instead of kraft. Paper Excellence has finalized its purchase of the facility in Prince Albert, Sask., that has been shut down since 2006.

Paper Excellence will be investing more than $200 million to convert the mill so that it can produce dissolving pulp. At least 200 direct jobs and hundreds of indirect jobs will be brought back to the community as the mill restarts.

Paper Excellence's Canadian vice-president of operations Ed Roste noted that Paper Excellence is embarking on an accelerated restart program with a targeted restart timeline of 12 months, ensuring that the mill is operational by the second quarter of 2012.

The company has begun hiring for key personnel in Prince Albert and its office will be fully operational within a week. Engineering contracts are being negotiated as are key equipment purchases.

The new timeline for restarting the mill will require major forest harvest activity no later than late fall this year. Roste said discussions are advancing well with industry and First Nations partners, government and a number of support operations.

"Saskatchewan has been a great place to operate with our mill in Meadow Lake," Roste said. "We are very excited to revive the Prince Albert pulp mill as part of our ongoing and long-term commitments to our forestry operations in Saskatchewan and Canada, and we thank the premier, the minister and the Saskatchewan government for their strong support."

Commitments made by the provincial government include provision of an adequate fibre supply, a clean biomass power purchase agreement with SaskPower, an agreement to maintain the existing environmental liability for a period of time when the mill operated as a Crown Corporation prior to 1986, and new pension plan agreements that respect the obligations to previous employees.

The government is also providing a letter of commitment for the $500,000 per year that it is allocating towards training of new mill operators in new mill processes during the mill's first two years of operation under its new owners.

May 11 Award Ceremony Honors Achievements in Sustainable Forestry,
Agriculture, and Tourism and Climate Change

Domtar Corporation Continuing its work with the Rainforest Alliance to help promote sustainability, Domtar announced today it will co-sponsor the Rainforest Alliance 2011 Annual Gala. The environmental group's 20th annual dinner and award ceremony May 11 in New York City will feature special guests Sigourney Weaver and Jane Alexander, and it will honor companies and individuals for their achievements in sustainable forestry, agriculture, tourism and climate change.

Proceeds from the gala will benefit the Rainforest Alliance's comprehensive conservation initiatives, helping ensure sustainable livelihoods and conserve biodiversity. The Rainforest Alliance pioneered the concept of responsible forestry certification in 1989, for instance, and has since certified more than 65.1 million hectares (160.8 million acres) in more than 74 countries to the rigorous standards of the Forest Stewardship Council™ (FSC®). The goal: to meet comprehensive environmental, social and economic standards which curb deforestation, provide habitat for wildlife and protect the rights and well-being of workers, their families and their communities.

"This is an important event for recognizing companies for their demonstrated commitments to sustainability," said Tensie Whelan, president of the Rainforest Alliance. "We are delighted to have worked with Domtar for over a decade now. Domtar continues to raise the bar for the paper industry, setting an example to encourage environmental responsibility."

This marks the sixth year Domtar has sponsored the Gala, one of the ways Domtar has teamed with the Rainforest Alliance to encourage responsible paper production and fiber sourcing. With the help of the Rainforest Alliance, all of Domtar's more than 30 facilities have now been certified to FSC standards, and the FSC label and the Rainforest Alliance Certified™ seal have grown more visible on packages of Domtar paper. Nearly 20 percent of Domtar's paper products have been FSC certified while, across America, the FSC estimates that only 4 to 6 percent of paper products earn that distinction.

"We're proud to be at the forefront of the responsible production and use of forest products, and we're excited to help honor this year's Sustainable Standard-Setters," said Lewis Fix, Domtar Vice President of Sustainable Business and Brand Management. "We're looking forward to the Rainforest Alliance's 2011 Gala, and a chance to salute some of this year's remarkable achievements in sustainability."

Clearwater Paper acquired Cellu Tissue Holdings, Inc. on December 27, 2010. The first quarter of 2011 is the first full period in which Cellu Tissue's results have been included in the company's financial statements, which inclusion represents the primary reason for many of the variances in the first quarter of 2011 compared to first quarter 2010 results.

The company reported net earnings of $5.6 million, or $0.47 per diluted share, for the first quarter of 2011, compared to net earnings of $0.5 million, or $0.04 per diluted share, for the first quarter of 2010.

The first quarter 2011 results include a net tax charge of $1.9 million, or $0.16 per diluted share, related to a mixture of discrete tax items and also an $11.4 million pre-tax charge, or $0.62 per diluted share, for scheduled major maintenance costs. The first quarter 2010 results included a one-time net tax charge of $4.4 million, or $0.37 per diluted share, resulting from the passage of the Patient Protection and Affordable Care Act of 2010 and also scheduled pre-tax major maintenance costs of $16.9 million, or $0.95 per diluted share.

The first quarter 2011 earnings before interest, taxes, depreciation and amortization, or EBITDA, was $41.7 million compared to $22.4 million in the first quarter of 2010.

"We are on schedule and on budget with the build out of our tissue facilities at Shelby, North Carolina," said Gordon Jones, chairman, president and chief executive officer. "The converting equipment and warehousing is being brought up to speed and we are continuing work related to the paper machine.

"We also continue to make very good strides with the integration of Cellu Tissue," said Jones. "Our people, operations and businesses are working very well together.

"As a result of the integration, we expect synergies to partially offset some of the higher pulp and transportation costs we have been experiencing in our tissue business, and we have announced our intention to raise tissue prices to help further offset these cost increases.

"Despite the cost challenges, we remain positive about both of our segments for the rest of 2011," concluded Jones.

Source: Clearwater Paper Corporation

Verso's net sales for the first quarter of 2011 increased $53.0 million, or 14.6%, as the average sales price for all of our products increased 13.3% compared to the first quarter of 2010 and increased 2.5% compared to the fourth quarter of 2010. The improvement in our average sales price reflects price increases that went into effect during 2010. We announced additional price increases for our core products of $40 per ton effective April 1, 2011. Verso's gross margin was 15.4% for the first quarter of 2011 compared to 7.4% for the same period in 2010 and 17.2% for the fourth quarter of 2010. Sales volume was stable on both a sequential quarter basis and year over year.

Verso reported a net loss of $44.6 million in the first quarter of 2011, or $0.84 per diluted share, which included $26.5 million of charges from special items, or $0.50 per diluted share, primarily due to $26.1 million in pre-tax net losses related to the early retirement of debt in connection with our debt refinancing. Verso had a net loss of $53.6 million, or $1.02 per diluted share, in the first quarter of 2010, which included $1.6 million of charges from special items, or $0.03 per diluted share, primarily due to costs associated with new product development.

"Our first quarter adjusted EBITDA results improved $34 million compared to the first quarter of 2010. Normally, the first and second quarters are seasonally slow quarters for coated papers, so we view our first quarter results as very positive," said Mike Jackson, President and Chief Executive Officer of Verso. "Prices continued to improve in the first quarter, consistent with our expectations. We also announced a price increase of $40 per ton, effective April 1 for all of our core products.

"All of our announced energy projects are on schedule, and, as previously mentioned, we expect a positive EBITDA impact of $50 million per year, beginning in the fourth quarter of 2012.

"During the quarter, we also focused on our capital structure by refinancing our second priority senior secured notes due 2014 and a portion of our first priority senior secured notes due 2014 with new second priority senior secured notes, which extended our maturity date to 2019 and reduced our interest expense."

Follow the link below to download the full report.

Source: Verso Paper Corp.

On the 4th May 2011 at the European Parliament, the International Confederation of paper and board Converters in Europe (CITPA) and the Confederation of European Paper Industries (CEPI) ,presented the voluntary ‘Industry Guideline for the Compliance of Paper & Board Materials and Articles for Food Contact’.

The event was hosted by MEP Ms. Pilar Ayuso (EPP-DE), member of the Parliament’s Environment, Public Health and Food Safety Committee who said it was important to know what the industry has done in the field of food safety.

The Guideline, which has been peer reviewed by PIRA International, refers to those aspects of quality assurance which are of most significance to ensure that paper and board meets the quality standards appropriate to their intended use in food contact. “Safety of food is a pre-eminent concern, the paper and board manufacturing and converting sector recognises this concern and gives top priority to the safety of the materials and articles it manufactures and supplies” said John Swift, Chair of the Cross Industry Group responsible for the drafting of the Industry Guideline. He added that “for the first time, all the components needed to facilitate compliance with EU legislation were included in one text”.

A challenge in demonstrating the commitment to supplying safe products is to demonstrate compliance with relevant legislation. The sector has cooperated at National Government and EU level for many years, and the Industry Guideline proposes a route for compliance with EC regulation 1935/2004, which covers all materials which come in direct contact with food.

The lack of a specific measure for paper and board has created a disadvantage in the market because paper and board materials appear to be “unregulated”. So, “if the European Commission decides to start drafting a specific measure for paper and board materials, we have the ground prepared to do so” said Mr. Bengt Nordin, CITPA President, in his closing remarks. Mr Nordin also presented the benefits of the Industry and pointed out the challenge of demonstrating the safety of paper and board. Mr Nordin said to be proud to announce that “the industry is monitoring the implementation of the Industry Guideline and so far, the results have shown a large acceptance within paper and board companies”.

Metso will supply a cooking plant and a fiber line upgrade to the Khon Kaen mill of Phoenix Pulp & Paper Co. in Thailand. Start-up of the equipment is scheduled for July, 2012. The value of the order is approximately EUR 10 million. The order is included in Paper and Fiber Technology’s Q2 2011 orders received.

Metso’s delivery will include a two-vessel digester for producing 200,000 tons of eucalyptus pulp per year. The delivery will also include a wash press for the fiber line upgrade. The new cooking system will enable the Khon Kaen mill to increase the production capacity and utilize the raw material more efficiently. It will also reduce the mill’s environmental impact.

Phoenix Pulp & Paper Public Company Limited is a pioneer in pulp products. Founded in 1975, the company is a subsidiary of SCG Paper, one of the leading integrated producers of pulp and paper products in Thailand. Phoenix Pulp & Paper sells its products to customers in Thailand and abroad.

M-real Corporation, part of Metsäliitto Group, plans to divest the entire Gohrsmühle mill in Germany or alternatively parts of the mill separately based on a Paper Park concept. In case the divestment would turn out to be unsuccessful M-real commences a process to discontinue the uncoated fine and the unprofitable parts of the speciality paper operations at Gohrsmühle mill. Should the closures materialize Gohrsmühle mill would only produce cast coated label and packaging products (Chromolux). M-real is also planning to discontinue its remaining carbonless paper converting operations at Reflex mill in Germany.

M-real has during recent years had several unsuccessful attempts with a number of candidates to divest the Alizay paper mill in France. M-real continues to search for possibilities to divest the mill. M-real invites credible candidates to a public process aiming at a divestment of the Alizay paper mill by the end of September 2011 at the latest. Should M-real fail to find a credible buyer for the mill within the given time frame, Alizay paper mill is planned to be closed.

If the measures are implemented as planned M-real’s annual sales is expected to reduce by about EUR 390 million and the operating result to increase by about EUR 60 million based on 2010 actual performances. Most of the annual financial impact is expected to be seen in 2012, full impact from 2013 onwards.

As a result from the planned measures M-real’s annual paper production capacity would reduce by about 500 000 tonnes of which about 430 000 tonnes would be uncoated fine paper and 70 000 tonnes coated specialty papers. None of these planned measures would be implemented without consulting the employee representatives in line with applicable legal requirements.

Both Gohrsmühle and Reflex mills have been heavily loss-making for a long time. If the divestment turns out to be unsuccessful M-real plans to continue the Chromolux-production at paper machine 2 and to discontinue all other production operations at Gohrsmühle. At the same time, Reflex carbonless paper converting is planned to be discontinued. If the closures would materialize the personnel reduction at Gohrsmühle and Reflex would be in total about 480 people. The planned measures have no impact on the previously announced plan to divest Reflex mill’s Premium Papers business. In total there are about 880 employees at Gohrsmühle and Reflex mills excluding the personnel included in the earlier announced Premium Papers divestment plan.

Also Alizay mill has been heavily loss-making for a long time. M-real has during last years implemented significant internal result improvement measures in Alizay, but as the operating environment has become more difficult the mill’s financial performance and outlook have remained very poor. Currently there are about 330 employees at Alizay mill.

”M-real has implemented extensive restructuring and development actions at Alizay and Gohrsmühle mills during recent years. Despite these actions M-real is not able to improve the mills’ profitability to satisfactory level due to the European overcapacity situation and the increased production costs. M-real has actively tried to divest Alizay and Gohrsmühle mills. In Alizay M-real will commence a public process lasting until the end of September 2011 to accelerate the divestment. M-real continues to try to find a buyer also for the entire Gohrsmühle mill or alternatively for the different parts of the mill. If the divestments of Alizay and Gohrsmühle are unsuccessful M-real considers to close Alizay mill and to discontinue the unprofitable businesses in Gohrsmühle. These planned measures are necessary to raise the company’s profitability to the target level,” says M-real’s CEO Mikko Helander.

Implementations of any measures are subject to the completion of statutory consultation processes with employees based on applicable local legislation. Also other future alternatives than closures will be investigated as part of the consultation processes. The consultations will be started at Gohrsmühle and Reflex as soon as possible. Concerning Alizay the information and consultation process relating to possible closure will be commenced in case the divestment process turns out unsuccessful. M-real will be proactive in the mitigation of the planned measures’ social impacts for the employees.

In total the planned measures are preliminarily expected to result in approximately EUR 170 million negative non-recurring result impacts. The estimated net cash costs are approximately EUR 50 million. Based on the planned measures Speciality Papers 2Q 2011 result is expected to include approximately EUR 20 million non-recurring impairments and cost provisions. Above estimates of the non-recurring financial impacts are preliminary and they will be further determined when the final decisions for the planned measures are taken.

”The planned measures are a major step in M-real’s transformation to a packaging board focused company. Despite the significant negative non-recurring result impact the planned measures are well justified from shareholder value point of view,” says Chairman of M-real’s Board of Directors Kari Jordan.