Aug 02, 2007. /Lesprom Network/. Consolidated sales for the third quarter ended June 30, 2007, were $783 million, down from $862 million in the comparable period last year. The company generated a net loss of $164 million or $1.91 per share compared to a net loss of $6 million or $0.08 per share in the corresponding quarter ended June 24, 2006. Earnings before unusual items, interest, income taxes, depreciation, amortization and other non-operating expenses (EBITDA) was negative $7 million, as compared to EBITDA of $21 million a year ago and EBITDA of $17 million in the prior quarter. The June 2007 quarterly financial results include an after-tax gain of $93 million or $1.09 per share relating to a gain on translation of foreign debt and an after-tax loss of $173 million or $2.02 per share relating to the asset impairment of a coated paper mill. After adjusting for these items and certain other items, the Company would have generated a net loss of $86 million or $1.00 per share. This compares to a net loss of $55 million or $0.65 per share in the corresponding quarter ended June 24, 2006, and a net loss of $58 million or $0.70 per share in the previous quarter. Overall, the June quarterly operating results fell short of the company’s expectations. The rapid appreciation of the Canadian dollar and the Euro versus the USD negatively impacted all of the company’s business segments. While lumber prices did improve in the latter part of the quarter, it was from historically low levels. Looking ahead, pulp markets are expected to remain strong and price increases have already been announced for the September quarter. Newsprint and lumber will continue to be challenging as producers will need to adapt to relatively weak demand fundamentals. As for the company, it will continue to focus on controllable items such as costs and operating efficiency, the key elements of its recovery plan. Management will also be expending considerable efforts to work with its financial advisors to develop and review potential strategic alternatives to address its current leveraged capital structure. Tembec is a large, diversified and integrated forest products company. With operations principally located in North America and in France, the company employs approximately 9 000 people. Tembec’s common shares are listed on the Toronto Stock Exchange.