MONTREAL – Tembec (TSX:TMB) said it had a third-quarter profit of $30 million, turning around a loss from the same period a year ago.
The forest products company said it earned 30 cents per share in the quarter, compared with a loss of $7 million, or seven cents per share, in the same quarter of 2013.
The company says its current results included a gain of $14 million related to the sale of land in British Columbia. Tembec has an objective to make $70 million from B.C. land sales by December.
Consolidated sales for period ended June 28 were $404 million, up slightly from $399 million in the same quarter a year ago, for the Montreal-based producer of paper, pulp and lumber.
Tembec said the results were better than anticipated and after relatively harsh winter conditions in the second quarter. All four business segments benefited from higher productivity and lower costs which it said more than offset the negative effect of a stronger Canadian dollar and lower selling prices.
The company’s specialty cellulose pulp segment generated operating earnings of $15 million, unchanged from the prior quarter, while its forest products segment generated operating earnings of $4 million, compared to operating earnings of $1 million in the prior quarter.
The pulp paper segment had operating earnings of $1 million versus an operating loss of $1 million in the prior quarter. Tembec said its paper segment generated operating earnings of $7 million, compared to an operating loss of $2 million in the prior quarter.
Tembec has operations in North America and France with some 3,500 employees and about $1.6 billion of annual sales. The United States accounts for more than one-third of sales and Canada 18 per cent. Europe, China and other parts of the world account for the rest.