Tembec: sales of forest products decreased due to lower timber prices

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Tembec/IHB
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Tembec's consolidated sales for the three-month period ended September 28, 2013, were $352 million, as compared to $443 million in the same quarter a year ago. Tembec generated net earnings of $6 million in the September 2013 quarter compared to a net loss of $47 million in the September 2012 quarter, the company said in a press release.

Operating earnings before depreciation, amortization and other items (adjusted EBITDA) was $25 million for the three-month period ended September 28, 2013, as compared to adjusted EBITDA of $23 million a year ago and adjusted EBITDA of $30 million in the prior quarter.

For the fiscal year ended September 28, 2013, consolidated sales were $1.5 billion, as compared to $1.7 billion in the prior year. The Company generated a net loss of $34 million compared to a net loss of $82 million in fiscal 2012. Adjusted EBITDA was $98 million compared to $64 million in the prior year.

The Forest Products segment generated adjusted EBITDA of $1 million on sales of $105 million for the quarter ended September 2013, compared to adjusted EBITDA of $7 million on sales of $110 million in the prior quarter. Sales decreased by $5 million due to lower lumber prices. The net effect decreased sales and adjusted EBITDA by $8 million or $41 per mbf. Lumber shipments were equal to 86% of capacity versus 83% in the prior quarter. Sawmill manufacturing costs were unchanged from the prior quarter.

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