Nov 20, 2008. /Lesprom.com/. Forestry company Tembec Inc. lost $4 million in the July-September period on smaller sales after turning a profit of $22 million a year earlier, The Canadian Press reported. Sales declined to $629 million from $675 million, cut by "extremely low" U.S. lumber prices. The loss for the 7,000-employee company's fourth quarter ended Sept. 27 was four cents per share, compared with year-ago earnings of $0.25 per share. Tembec said it is assessing its business segments to refocus capital resources with a view to improved operating margins and maximized cash flow in light of market conditions. An update of this review will be provided Dec. 10. "Overall, the September quarterly operating results were an improvement over the previous quarter, but remained below targeted levels," the company stated Wednesday. "The extremely low U.S.-dollar lumber selling prices experienced over the last several quarters continue to depress earnings." The forest products segment's operating losses were unchanged even though sales increased 15 per cent to $167 million due to higher by-product sales, higher prices and increased lumber volumes. Engineered wood sales fell $4 million on lower volumes. Tembec stopped consolidating results from the Temlam engineered wood joint venture following its bankruptcy in early September. The pulp segment generated $36 million in earnings before interest, taxes, depreciation and amortization on sales of $361 million, compared to $19 million a year ago on sales of $369 million. Lower shipments of high-yield pulp were partly offset by higher prices. Paper segment EBITDA increased to $7 million from $3 million as sales increased by $14 million to $126 million because of higher prices and shipments.