International Forest Products (Interfor) posted net earnings of C$300,000 (US$303,000) for the second quarter, a jump into the red from the C$5.3 million (US$5.4 million) loss reported a year ago, the company announced today. Total sales rose 20% to C$225.4 million (US$227.7 million).
Net earnings for the period ending June 30 were helped by a 12% increase in the average selling price of lumber, which was C$448 per thousand board feet as well as a 9% growth in lumber sales volumes, which reached 363 million board feet.
EBITDA, which the company defines as earnings before finance costs, taxes, depreciation, depletion, amortization, restructuring costs, other foreign exchange gains and losses, and asset write-downs was $16.5 million for the quarter, up 46% from a year ago. Adjusted EBITDA, which is defined as EBITDA revised for other income and other income from the associate company, was also C$16.5 million.
Sales at the Vancouver, British Columbia-based manufacturer’s lumber division rose 21% to C$162.4 million (US$164 million). Sales in the logs segment were C$35.6 million (US$36 million), a 24% increase over the same period a year ago.
Lumber production increased from 325 million board feet a year ago to 333 million board feet for 2012’s second quarter. The company also posted a 21% rise in log sales to reach 379 thousand cubic meters as log production grew 6% to 840 thousand cubic meters.
“The near-term outlook for recovery in the U.S. housing sector remains uncertain and concerns over sustainability continue,” said the company in its earnings report. “Export taxes have declined to 5% for July but will increase to 10% in August due to recent decreases in the relevant market benchmark.”
Interfor also said the outlook for China has softened as the Chinese government has scaled back economic growth targets and government restrictions designed to stabilize housing prices have weakened real estate markets. The manufacturer remained positive about Japan, however, as rebuilding activity should continue to improve in areas impacted by last year’s earthquake.