Sales
The Company's paper shipments in the first quarter of 2013 were 35,000 tonnes, up 3,000 tonnes, or 9%, from the fourth quarter of 2012 and 5,400 tonnes, or 18%, higher than the first quarter of 2012. Prime bleached shipments, which attract higher prices, were up 7% from the previous quarter and up 23% from the first quarter of 2012.
Unit sales realizations for paper products were down slightly from the fourth quarter of 2012 in part reflecting a lower-value sales mix, which was partly offset by the weaker Canadian dollar. Paper sales realizations were up 4% from the comparable period in the prior year, mainly due to increased prime bleached product sales and a slightly weaker Canadian dollar.
Operations
Paper production in the first quarter of 2013 was 34,800 tonnes, in line with the previous quarter. Production was up 1,900 tonnes compared to the first quarter of 2012, reflecting improved operating rates.
Paper unit manufacturing costs were up 3% from the previous quarter as a result of higher costs for slush pulp, principally reflecting higher market pulp prices partially offset by a reduction in operating and maintenance costs.
Compared to the first quarter of 2012, unit manufacturing costs were down, principally reflecting higher productivity in the current quarter.
Unallocated Items(9)
Q1 Q4 Q1(millions of Canadian dollars) 2013 2012 2012---------------------------------------------------------------------------Corporate costs $ (2.3) $ (2.7) $ (3.4)Finance expense, net $ (3.1) $ (3.7) $ (3.2)Foreign exchange gain (loss) on long-term debt $ (2.3) $ (1.3) $ 2.0Gain (loss) on derivative financial instruments $ 0.7 $ (0.1) $ 1.3Foreign exchange gain (loss) on working capital $ 0.7 $ 0.3 $ (0.8)------------------------------------------------------------------------------------------------------------------------------------------------------(9) Certain prior period amounts have been restated due to the adoption ofamended IAS 19, Employee Benefits. Further details can be found in theCompany's unaudited interim consolidated financial statements.
Corporate costs were $2.3 million for the first quarter of 2013, down slightly from the previous quarter and down $1.1 million from the first quarter of 2012. The decrease in the current quarter in part reflected lower incentive compensation costs and higher income from green energy attributes which are not allocated to segment results. Included in the fourth quarter of 2012 corporate costs was a portion of the accounting gain due to amendments to the Company's salaried post retirement benefit plans.
Net finance expense for the first quarter of 2013 was $3.1 million, down slightly from the previous quarter primarily reflecting costs in the fourth quarter of 2012 associated with a new operating facility. Net finance expense was in line with the first quarter of 2012. The finance expense for each period principally represents interest expense on long-term debt and stand-by fees for the Company's operating lines, as well as the finance expense relating to the Company's defined benefit post-retirement benefit plans.
The Company recorded a foreign exchange translation loss on its US dollar denominated debt of $2.3 million for the first quarter of 2013, as a result of the weakening of the Canadian dollar against the US dollar, which fell by just over 2% between the respective quarter ends. In the fourth quarter of 2012, the Company recorded a translation loss of $1.3 million, while the first quarter of 2012 showed a gain of $2.0 million.
