Skip to main content

Jacques Boissinot/Jacques Boissinot/CP

Forest products company Tembec Inc. says its net loss for the first quarter deepened by 33 per cent to $12-million, despite higher sales.

The Montreal-based company lost 12 cents per share for the period ended Dec. 25, compared to a nine-cent loss, or $9-million, a year earlier.

Sales for the quarter increased by $10-million to $422-million.

Story continues below advertisement

Operating earnings before depreciation, amortization and other non-recurring items (EBITDA) improved by $7-million to $11-million compared to the prior year, but was down from $36-million in the fourth quarter.

Tembec's loss adjusted for one-time items was 10 cents per share, compared to six cents a year earlier when it benefited from a 16-cent gain on the translation of foreign debt.

One analyst polled by Thomson Reuters had expected the adjusted loss would be 11 cents per share on $438-million of revenues.

Tembec's corporate expenses included a $4-million charge for share-based compensation because the value of its shares doubled during the quarter.

Tembec said its results in the first quarter were impacted by planned maintenance downtime, the higher Canadian dollar, the inability to fully capture higher lumber prices and lower shipments of chemical pulp.

Lower seasonal productivity combined with timber quality issues at a few sawmills were also contributing factors.

Tembec forecast a significant improvement in second-quarter results.

Story continues below advertisement

Tembec is an integrated forest products company, with operations in North America and France. It has some 6,000 employees, and operates more than 30 market pulp, paper and wood product manufacturing units, and produces silvichemicals from byproducts of its pulping process and specialty chemicals.

Tembec markets its products worldwide and has sales offices in Canada, the United States, China, Korea and Japan.

Report an error
Tickers mentioned in this story
Unchecking box will stop auto data updates
Comments

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • All comments will be reviewed by one or more moderators before being posted to the site. This should only take a few moments.
  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed. Commenters who repeatedly violate community guidelines may be suspended, causing them to temporarily lose their ability to engage with comments.

Read our community guidelines here

Discussion loading ...

Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.
Cannabis pro newsletter