Jul 23, 2010. /Lesprom Network/. International Forest Products Ltd. (Interfor) reported a net loss of $2.6 million in the 2Q 2010. The loss for the quarter includes a tax valuation allowance of $1.3 million, which results from the company no longer recognizing the tax benefit of loss carry forwards, the company said in a statement received by Lesprom Network. Excluding the tax valuation allowance and other one-time items the loss for the quarter was $0.6 million compared to a loss of $2.3 million in the 1Q and a loss of $13.4 million in the 2Q 2009. EBITDA for the quarter (adjusted to exclude "other income") was $13.1 million, compared to $9.7 million in the 1Q and negative $7.3 million in the same quarter last year. "Higher commodity prices in April and early May were quickly offset by lower activity levels and prices in late May and June," said Duncan Davies, Interfor's President and CEO. Lumber production increased 7% quarter-over-quarter to 277 million board feet, representing approximately 69% of rated capacity, in spite of a number of curtailments taken at the company's U.S. operations in June as conditions deteriorated. Log production at the company's Canadian operations was 624,000 cubic metres in the 2Q compared with 648,000 cubic metres in the 1Q. Lumber sales, including wholesale volumes, totalled 270 million board feet, an increase of 6 million board feet versus the 1Q. On a volume basis, excluding wholesale programs, sales to North American markets accounted for 78% of shipments in the 2Q versus 74% in the 1Q while Pacific Rim markets including Japan and China accounted for 21% compared to 23% in the 1Q. In the quarter Interfor generated $4.4 million in cash from operations after changes in working capital were considered. Capital spending totalled $6.0 million, including $3.7 million on logging roads. Net debt closed the quarter at $154.6 million or 30% of invested capital compared with $152.0 million and 30% at the end of the 1Q. 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