The B.C.-based pulp and paper producer reported a net loss of $28 million or $1.93 per share, more than double the $11.7 million, or three cents per share, loss in the same period a year earlier.
"Markets for all the company's paper products remain challenging and demand trended down overall compared to the same period of the prior year," the company said in a statement.
It said that newsprint sales declined by 8.9 per cent, and directory paper sales fell by 15.2 per cent.
Catalyst reported revenues of $263.4 million, slightly up from the $264.8 million reported in the second quarter of 2012.
Operating losses were $12 million from a $9.3 million profit a year ago.
The company expects specialty paper prices to remain under pressure, while newsprint demand will further weaken as media companies continue to migrate towards electronic media.
It sees modest growth as the U.S. economy continues to strengthen, but Canadian growth is expected to slow.
In January, Catalyst returned as a publicly traded company on the Toronto Stock Exchange after it completed a court-supervised restructuring.Suggest a correction