Jan 27, 2011. /Lesprom Network/. Tembec generated a net loss of $12 million in the 1Q, ended December 25, 2010, compared to a net loss of $9 million in the December 2009 quarter, as the company said in a press release received by Lesprom Network. Consolidated sales for the three-month period ended December 25, 2010, were $422 million, as compared to $412 million in the comparable period of the prior year. Operating earnings before depreciation, amortization and other specific or non-recurring items (EBITDA) was $11 million for the three-month period ended December 25, 2010, as compared to EBITDA of $4 million a year ago and EBITDA of $36 million in the prior quarter. The Forest Products segment generated negative EBITDA of $11 million on sales of $113 million. This compares to negative EBITDA of $5 million on sales of $113 million in the prior quarter. Demand for SPF lumber remained relatively weak with shipments equal to 54% of capacity, as compared to 52% in the prior quarter. The Dissolving and Chemical Pulp segment generated EBITDA of $19 million on sales of $148 million for the quarter ended December 25, 2010 compared to EBITDA of $30 million on sales of $166 million in the prior quarter. Sales decreased by $18 million primarily as a result of lower shipments of chemical pulp. The High-Yield Pulp segment generated EBITDA of $7 million on sales of $107 million for the quarter ended December 25, 2010 compared to EBITDA of $13 million on sales of $104 million in the prior quarter. Sales increased by $3 million as higher shipments more than offset lower selling prices. The Paper segment generated EBITDA of $4 million on sales of $87 million. This compares to EBITDA of $4 million on sales of $96 million in the prior quarter. Lower shipments of bleached board and newsprint led to the decline in sales. The decline in bleached board shipments was not caused by a decline in demand as markets were strong and shipments equalled 92% of capacity. Tembec is a large, diversified and integrated forest products company which stands as the global leader in sustainable forest management practices.