Tembec reports 1Q net loss of $16 million
Jan 26, 2012. Tembec reports financial results for its 1Q ended December 24, 2011. Consolidated sales for the three-month period ended December 24, 2011, were $401 million, as compared to $422 million in the comparable period of the prior year. Tembec generated a net loss of $16 million in the December 2011 quarter compared to a net loss of $11 million in the December 2010 quarter.
Jan 26, 2012. /Lesprom Network/. Tembec reports financial results for its 1Q ended December 24, 2011. Consolidated sales for the three-month period ended December 24, 2011, were $401 million, as compared to $422 million in the comparable period of the prior year. Tembec generated a net loss of $16 million in the December 2011 quarter compared to a net loss of $11 million in the December 2010 quarter, as the company said in a press release received by Lesprom Network.
Operating earnings before depreciation, amortization and other specific or non-recurring items (EBITDA) was $12 million for the three-month period ended December 24, 2011, as compared to EBITDA of $12 million a year ago and EBITDA of $19 million in the prior quarter.
The Specialty Cellulose and Chemical Pulp segment generated EBITDA of $27 million on sales of $152 million for the quarter ended December 24, 2011, compared to EBITDA of $30 million on sales of $180 million in the prior quarter. Sales decreased by $28 million primarily as a result of lower shipments.
The High-Yield Pulp segment generated negative EBITDA of $9 million on sales of $74 million for the quarter ended December 24, 2011, compared to negative EBITDA of $8 million on sales of $76 million in the prior quarter. Sales decreased by $2 million as a result of lower shipments.
The Paper segment generated EBITDA of $10 million on sales of $85 million for the quarter ended December 24, 2011, compared to EBITDA of $6 million on sales of $84 million in the prior quarter. Higher prices and newsprint shipments were offset by lower coated bleached board shipments.
The Forest Products segment generated negative EBITDA of $11 million on sales of $126 million for the quarter ended December 24, 2011, compared to negative EBITDA of $10 million on sales of $121 million in the prior quarter. The increase in sales was due to higher shipments. Demand for SPF lumber remained relatively weak with shipments equal to 64% of capacity, as compared to 59% in the prior quarter.
Tembec is a large, diversified and integrated forest products company which stands as the global leader in sustainable forest management practices. The Company’s principal operations are located in Canada and France.