PORT TOWNSEND — A large increase in the sale price of its core product has helped Port Townsend Paper’s parent company cut its third-quarter losses to almost one quarter of what they were in 2005.
PT Holdings Company Inc. reported a net loss of $1 million for the three months ending Sept. 30, compared to $3.9 million reported for the same period in 2005.
Tim Leybold, the company’s chief financial officer, said the improved performance was because of a number of factors, but mostly because of higher market pricing for pulp and container board.
“We have improved since 2005. There’s been some operating cost increases but strong industry prices have helped.
“We anticipate prices will stay at least where they are at if not improve more. These are record prices not seen the early 90s. It’s just really strong,” Leybold said.
Leybold said what’s referred to as 42-pound linerboard is selling for $520 a ton, which is $130 a ton higher than a year ago.
“Our margins are still better than a year ago.
“The cost of energy and fiber are higher but not as much as the product.
“The price increases have far outpaced the cost increases,” he said.
Port Townsend Paper, Jefferson County’s largest private industry, employs about 320 in Port Townsend, and annually produces more than 320,000 tons of unbleached kraft pulp, paper and linerboard at the Port Townsend mill.
PT Holdings’ companies employ about 800 people and annually produce more than 320,000 tons of unbleached kraft pulp, paper and linerboard at its mill in Port Townsend.
