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Tembec reports loss

Tembec reported a net loss of $10 million in its first quarter, ending the end of December, on consolidated sales of $376 million.

Tembec reported a net loss of $10 million in its first quarter, ending the end of December, on consolidated sales of $376 million.

For comparison, in the previous quarter, Tembec reported a net loss of $16 million on consolidated sales of $401 million.

Operating earnings before depreciation, amortization and other items (adjusted EBITDA) was $19 million for the three-month period, as compared to adjusted EBITDA of $12 million a year ago and adjusted EBITDA of $23 million in the prior quarter.

Overall, the results were in line with expectations, according to a press release. The forest products segment results declined versus what had been a very strong September quarter. Looking ahead, the normal seasonal increase in prices is anticipated in the March quarter. While the recent housing statistics in the United States are encouraging, Tembec continues to forecast a slow and gradual recovery in housing, with lumber demand and prices following a similar pattern.