Tembec reports net earnings of $19 million
Jul 27, 2011. Tembec posts consolidated sales for the three-month period ended June 25, 2011, of $448 million, as compared to $545 million in the comparable period of the prior year. The company generated net earnings of $19 million in the June 2011 quarter compared to net earnings of $59 million in the June 2010 quarter.
Jul 27, 2011. /Lesprom Network/. Tembec posts consolidated sales for the three-month period ended June 25, 2011, of $448 million, as compared to $545 million in the comparable period of the prior year. Tembec generated net earnings of $19 million in the June 2011 quarter compared to net earnings of $59 million in the June 2010 quarter, as the company said in a statement received by Lesprom Network.
Operating earnings before depreciation, amortization and other specific or non-recurring items (EBITDA) was $32 million for the three-month period ended June 25, 2011, as compared to EBITDA of $60 million a year ago and EBITDA of $33 million in the prior quarter.
The Dissolving and Chemical Pulp segment generated EBITDA of $45 million on sales of $188 million for the quarter ended June 25, 2011, compared to EBITDA of $44 million on sales of $177 million in the prior quarter. Sales increased by $11 million as a result of increased prices for dissolving pulp.
The High-Yield Pulp segment generated negative EBITDA of $3 million on sales of $93 million for the quarter ended June 25, 2011, compared to EBITDA of $1 million on sales of $102 million in the prior quarter. Sales decreased by $9 million as a result of lower selling prices and shipments.
The Paper segment generated EBITDA of $9 million on sales of $85 million. This compares to EBITDA of $9 million on sales of $83 million in the prior quarter. Higher shipments of coated bleached board and newsprint led to the increase in sales.
The Forest Products segment generated negative EBITDA of $16 million on sales of $113 million. This compares to negative EBITDA of $9 million on sales of $124 million in the prior quarter. Demand for SPF lumber remained relatively weak with shipments equal to 56% of capacity, as compared to 57% in the prior quarter. US $ reference prices for random lumber decreased by approximately US $52 per mbf on average while stud lumber decreased by US $14 per mbf. The stronger Canadian dollar further reduced prices. The combined price effect was a decrease in EBITDA of $7 million or $31 per mbf.
Tembec is a large, diversified and integrated forest products company which stands as the global leader in sustainable forest management practices.