Feb 11, 2011. /Lesprom Network/. Interfor reported net income of $0.6 million in the 4Q 2010. Included in the company's accounts for the quarter was a tax valuation allowance of $0.1 million and other one-time items of $0.1 million. Excluding these items the company recorded net income of $0.7 million, compared to a loss of $1 million in the immediately preceding quarter and a loss of $4.4 million in the 4Q 2009. Also included in the company's accounts in the 4Q was a provision for long-term compensation expenses of $1.4 million or $0.03 per share compared with a provision of $0.2 million in the 3Q and $1.5 million in the 4Q 2009. EBITDA for the quarter (adjusted to exclude one-time items and "other income" but including the long-term compensation expense) was $14.5 million, up $3.9 million or 37% versus the 3Q, and up $8.8 million or 155% versus the 4Q 2009. "Higher operating rates and product prices helped to offset the impact of the strong C$ during the quarter," said Duncan Davies, Interfor's President and CEO. "Lumber production and sales volumes were up 11% and 16% in the fourth quarter to 303 million board feet and 321 million board feet respectively," said Davies "representing an annualized run rate of 1.2 billion board feet and the company's strongest quarter from a volume standpoint since the 2Q 2006." Higher operating rates at the Adams Lake sawmill and strong performance at Castlegar helped to offset partial curtailments at the Hammond, Grand Forks and Beaver sawmills in the quarter. For the year, production and sales volumes increased by 68% and 70% respectively. Sales to China continued to increase in the 4Q, accounting for more than 28% of the company's total shipments compared with 25% in the 3Q. Shipments to Japan and other Pacific Rim markets accounted for 8% of sales volumes in the 4Q compared with 7% in the preceding quarter. "We continue to be very pleased in the growth in sales activity in China," said Davies. "The strength of the Chinese market offers an important counterbalance to the traditional market in North America and offers exciting potential for further growth." More than 36% of Interfor's shipments to China in the fourth quarter originated in the U.S. compared with 31% in the 3Q. Net debt closed the quarter at $147 million or 30% of invested capital compared with $151 million at the end of the 3Q. Interfor is one of the Pacific Northwest's largest producers of quality wood products. The company has operations in British Columbia, Washington and Oregon, including two sawmills in the Coastal region of British Columbia, three in the B.C. Interior, two in Washington and two in Oregon.