Jun 16, 2011. /Lesprom Network/. For the 1Q ended March 31, 2011, EACOM Timber Corporation recorded sales of $79,955, against sales of $65,386 for the preceding quarter, as the company said in a press release received by Lesprom Network. During the quarter, the Company shipped 170 million board feet of lumber (136 million board feet in the earlier quarter) and 161,000 oven-dried metric tons of by-products (148,000 oven-dried metric tons in the preceding quarter). The pricing environment improved with benchmark lumber prices averaging $327/Mfbm for studs and $383/Mfbm for random lengths delivered Great Lakes, compared to $296/Mfbm and $350/Mfbm respectively for the quarter ended December 31, 2010. However, the positive impact of a firmer pricing environment was partially offset by a strengthening Canadian dollar, with the exchange rate averaging 1.015 during the 1Q 2011, compared to an average of 0.987 during the preceding quarter. As well, discounts observed on studs relative to random lengths remained at record levels during the quarter, reflecting the slow housing market. The mix of lumber grades and dimensions deteriorated slightly during the 1Q due to sawmill operations being negatively impacted by winter conditions. Prices of by-products have remained constant over the past two quarters. EACOM Timber’s operating results are significantly affected by lumber prices and the CDN$/US$ exchange rate. During the quarter ended March 31, 2011, lumber prices somewhat firmed up, offset however by a stronger Canadian dollar. The company recorded for the quarter a negative EBITDA of $3,637 ($12,065 for the quarter ended December 31, 2010), and a negative EBITDA excluding specific items of $3,637 ($6,355 for the preceding quarter). The net loss and comprehensive loss for the quarter amounted to $6,131 or $0.01 per common share ($13,725 or $0.03 per common share for the preceding quarter). Lumber production for the quarter ended March 31, 2011 was 166 million board feet of lumber, compared to 140 million board feet in the preceding quarter. During the quarter, the Company operated at 65% of its capacity with two of the eight sawmills acquired from Domtar idled (55% during the earlier quarter with no change to idled mills). Some sawmills were subject to market-related downtime during both quarters. Unit costs were consistent with those experienced in the earlier quarter, except for a lower recovery factor and higher drying costs due to seasonal conditions. SG&A expenses were lower in the first quarter of 2011 as compared to the previous quarter, which included some non-recurring costs incurred in connection with the acquisition of the Domtar forest products business. The business activities of EACOM consist of the manufacturing, marketing and distribution of lumber, wood chips and wood-based value-added products, and the management of forest resources. EACOM owns seven sawmills and an equity interest in an eighth sawmill, all located in Eastern Canada, and related tenures.