Jan 31, 2013. /Lesprom Network/. Tembec's consolidated sales for the three-month period ended December 29, 2012 , were $376 million, as compared to $401 million in the comparable period of the prior year, as the company said in a press release received by Lesprom Network. The Company generated a net loss of $10 million or $0.10 per share in the December 2012 quarter compared to a net loss of $16 million or $0.16 per share in the December 2011 quarter. Operating earnings before depreciation, amortization and other items (adjusted EBITDA) was $19 million for the three-month period ended December 29, 2012, as compared to adjusted EBITDA of $12 million a year ago and adjusted EBITDA of $23 million in the prior quarter. The Specialty Cellulose Pulp segment generated adjusted EBITDA of $18 million on sales of $103 million for the quarter ended December 29, 2012, compared to adjusted EBITDA of $25 million on sales of $127 million in the prior quarter. The $19 million decline in pulp sales was due to lower shipments of specialty and viscose grades. US dollar and euro prices for specialty grades and viscose grades were relatively unchanged quarter over quarter. However, with the Canadian dollar weakening by 3.2% versus the euro, Canadian dollar equivalent pricing increased by $2 million or $39 per tonne sold. The specialty cellulose market conditions remained favourable. Specialty cellulose shipments were equal to 65% of capacity as compared to 84% in the prior quarter. The relatively low level of shipments in the December 2012 quarter was due in part to the annual maintenance shutdown at the Temiscaming mill, which lasted 10 days. Inventories also increased by 4,700 tonnes due to logistical delays in shipping orders in the latter part of the quarter. Mill manufacturing costs increased by $6 million due primarily to annual planned maintenance at the Temiscaming facility. The balance of the decline in adjusted EBITDA relates to the previously noted decline in shipments. The Paper segment generated adjusted EBITDA of $6 million on sales of $78 million for the quarter ended December 2012 , compared to adjusted EBITDA of $14 million on sales of $96 million in the prior quarter. Lower coated bleached board and newsprint shipments caused the $18 million decrease in sales. In terms of markets, coated bleached board was stable. Newsprint also remained stable despite continued weaker North American demand statistics. The US $ reference prices for coated bleached board declined by $7 per short ton while the US $ reference price for newsprint was unchanged. Currency was slightly negative as the Canadian dollar averaged $1.009, a 0.6% increase from $1.003 in the prior quarter. Overall, pricing was unchanged from the prior quarter. Coated bleached board shipments were equal to 86% of capacity as compared to 111% in the prior quarter. The shipment to capacity percentage for newsprint was 89%, compared to 103% in the prior quarter. The previous quarter shipment levels were not sustainable and a reduction in the current quarter was anticipated. As well, the coated bleached board mill in Temiscaming incurred six days of planned maintenance downtime in the most recent quarter. This in turn increased their manufacturing costs by $2 million. Mill level costs at the newsprint mill increased by $3 million due primarily to higher electricity costs. In the prior quarter, the newsprint mill had benefited from the very low rates. The balance of the decline in adjusted EBITDA was driven by the lower shipments. The Forest Products segment generated adjusted EBITDA of $2 million on sales of $101 million for the quarter ended December 29, 2012, compared to adjusted EBITDA of $8 million on sales of $108 million in the prior quarter. Sales decreased by $7 million due primarily to lower shipments of lumber and sawmill by-products. Demand for SPF lumber was stable with shipments equal to 84% of capacity, as compared to 86% in the prior quarter. $ reference prices for random lumber increased by $23 per mbf while stud lumber decreased by $18 per mbf. Currency was slightly negative as the Canadian dollar strengthened versus the US dollar. When combined with a lower sales mix factor, the net price effect was a decrease in adjusted EBITDA of $1 million or $5 per mbf. During the most recent quarter, several of the sawmills experienced planned downtime during the Christmas holiday period, increasing costs by approximately $2 million. The winter months are also seasonally higher cost periods for the sawmills. In total, mill level manufacturing costs increased by $5 million. The Paper Pulp segment generated nil adjusted EBITDA on sales of $117 million for the quarter ended December 29, 2012 , compared to negative adjusted EBITDA of $18 million on sales of $140 million in the prior quarter. The $23 million decline in sales was due primarily to lower shipments as a result of the idling of the Chetwynd high-yield pulp mill that occurred in the prior quarter. Market conditions for paper pulp remained relatively weak. The benchmark price (delivered China ) for Northern Bleached Softwood Kraft (NBSK) increased by $32 per tonne while reference prices for bleached eucalyptus kraft (BEK) declined by $8 per tonne. Currency was also a slight negative as the Canadian dollar strengthened versus the US dollar. Overall, paper pulp prices were relatively unchanged, declining by $5 per tonne and reducing adjusted EBITDA by $1 million. Paper pulp shipments were equal to 98% of capacity as compared to 91% in the prior quarter. Mill level manufacturing costs declined by $11 million. In the prior quarter, the Skookumchuck NBSK mill had undergone its annual maintenance outage, which lasted seven days. Profitability also improved due to the closure of the Chetwynd high-yield pulp mill, which generated negative adjusted EBITDA of $5 million in the prior quarter. In the December 2012 quarter, increasing selling prices led to an increase of $2 million in the carrying values of finished goods and raw material inventories, increasing adjusted EBITDA. This is the opposite of what occurred in the prior quarter when declining selling prices had led to a $3 million decrease in the carrying values of finished goods and raw materials. Paper Pulp inventories were at 29 days of supply at the end of December 2012, as compared to 36 days at the end of September 2012. Tembec is a manufacturer of forest products - lumber, pulp, paper and specialty cellulose - and a global leader in sustainable forest management practices. Principal operations are in Canada and France.