Aug 14, 2013. /Lesprom Network/. Conifex Timber Inc. ("Conifex" or the "Company") reported a net income of $2.4 million or $0.12 per diluted share for the 2Q 2013 compared to net income of $6.2 million or $0.29 per diluted share for the previous quarter and a net loss of $2.4 million or $0.13 per share for the 2Q 2012. Net income for the first six months of 2013 was $8.6 million or $0.42 per diluted share compared to a net loss of $9.0 million or $0.49 per share over the same period last year, as the company said in the press release received by Lesprom Network.

Revenues totalled $64.4 million in the 2Q 2013 compared to $66.2 million in the previous quarter and $55.8 million in the 2Q 2012. Lumber shipments totalled approximately 132 million board feet during the 2Q 2013 and included wholesale lumber shipments of approximately 12 million board feet. Shipments of Conifex produced lumber was largely flat compared to the previous quarter, which lagged current quarter production volumes by 12% as the Company built finished goods transit inventory late in the quarter in anticipation of increased export order files in the subsequent period. A decline in shipments of wholesale lumber of 28% or approximately 5 million board feet from the previous quarter was largely attributable to the decline in demand from the Chinese market.

2Q 2013 net income of $2.4 million was comprised of lumber segment net income of $4.7 million offset by bioenergy segment net loss of $0.2 million and corporate costs and other items of $2.1 million. 2Q lumber segment EBITDA of $6.7 million was offset by negative bioenergy segment EBITDA of $0.2 million and corporate costs and other items of $1.7 million.

Compared to the 1Q 2013, lumber segment net income declined by $4 million as the effects of lower mill net realizations and higher log costs were only partially offset by the benefits of increased revenue from residuals and a modest improvement in unit cash conversion costs. Compared to the 2Q 2012, lumber segment net income increased by $5.4 million as the benefits of a significant improvement in mill nets realization from higher lumber prices and a zero percent export tax rate, and reduction in unit cash conversion costs more than offset higher log costs.

Conifex and its subsidiaries' primary business currently includes timber harvesting, reforestation, forest management, and the manufacture, sale and distribution of dimension lumber.