Ainsworth Lumber reports 2Q sales of $117.4 million, down from $127.5 million a year earlier

Market: Panels
Posted August 12, 2014
Aug 12, 2014. /Lesprom Network/. Ainsworth Lumber Co. Ltd. announced its financial results for the 2Q ended June 30, 2014. Sales of $117.4 million in the 2Q 2014 were $10.1 million lower than sales of $127.5 million for the same period in 2013. The decrease in sales was mainly due to a 24% decrease in realized pricing, as the company said in the press release received by Lesprom Network.

In the first half of 2014, sales were $225.2 million compared to $269.3 million in the same period of 2013. The $44.1 million decrease was related to a 25% decrease in realized pricing, partially offset by an 11% increase in sales volumes and the same factors noted above. The increase in volume from High Level was partially offset by transportation issues that limited shipments during the first quarter of 2014.

Adjusted EBITDA was $13.1 million in the 2Q 2014 compared to $50.7 million in the same period of 2013, largely as a result of lower realized pricing.

Notwithstanding the significant reduction in gross profit, net income from continuing operations in the second quarter of 2014 was $9.5 million higher than the prior year. This increase was largely due to fluctuations in non-cash accounting gains and losses and income tax expense combined with decreased selling and administration expense.

Adjusted EBITDA for the first half of 2014 was $23.3 million compared to $113.2 million in 2013, due mainly to lower realized pricing. Net loss from continuing operations in the first six months of 2014 was $2.2 million, compared to net income of $39.3 million for the same period in 2013, representing a decrease of $41.5 million. The decrease reflected lower gross profit, partially offset by fluctuations in non-cash accounting gains and losses and income tax expense.

Ainsworth President and CEO, Jim Lake said, "North American OSB market conditions were relatively weak as the spring building season did not materialize as anticipated. North American benchmark OSB prices were stable relative to the prior quarter, although they were nearly 40% or U.S.$130/msf lower than the 2Q 2013. Despite the slower pace of housing growth in the near-term, we are optimistic about the longer-term recovery and continued absorption of industry supply. The recent slower market environment in North America does highlight the strategic importance of our traditional export market in Japan as well as the progress we are making in markets such as China for new applications of OSB."

Ainsworth Lumber Co. Ltd. is a leading manufacturer and marketer of oriented strand board with a focus on value-added specialty products for markets in North America and Asia.

+7 499 6535608
Ordzhonikidze, 11 109028 Moscow, Russia


Topics: Finance

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