MONTREAL – Tembec missed expectations even though the forest products company trimmed its fiscal second-quarter net loss to $28 million despite lower revenues.
The Montreal-based producer of paper, pulp and lumber reported after markets closed Monday that it lost 28 cents per share for the period ended March 29, compared with a net loss of $31 million or 31 cents per diluted share a year ago.
Revenues decreased 11 per cent to $362 million from $407 million a year ago.
Tembec (TSX:TMB) says the results were impacted by $24 million of non-cash charges related to the translation of U.S.-denominated debt, the settlement of defined benefit pension plan obligations and deferred income taxes.
Adjusted pre-tax operating earnings (EBITDA) were $18 million, down from $24 million in the comparable prior-year period.
Tembec was expected to earn six cents per share and two cents excluding one-time items, according to analysts polled by Thomson Reuters.
The company announced Friday that it had reached an agreement to sell about 49,500 hectares of land in the East Kootenay region of British Columbia to Jemi Fibre Corp. in a deal worth at least $37.1 million.
It will sell the land to Jemi in two phases — 17,700 hectares in June for $15 million, and 31,800 hectares for $20 million in September — subject to the buyer obtaining financing.
The company hopes to sell up to $70 million worth of land in British Columbia by December, $5 million less than previously forecast.
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.
On the Toronto Stock Exchange, the company’s shares closed up five cents or 2.13 per cent at $2.40 on Monday.
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