Editor's Note: Average foreign exchange rate for full-year results was calculated by averaging out the average foreign exchange rates for all of 2011’s quarters. The company provided an average foreign exchange rate for the fourth quarter, which was used on conversions of all the quarter’s results.

Interfor slipped into the red during the fourth quarter, from the same period a year ago, with a C$6.5 million (US$6.6 million) loss, despite an almost 8% rise in sales to C$190 million (US$193.8 million) for the period ended Dec. 31, the company announced today.

The Vancouver, British Columbia-based lumber producer reported an operating loss of C$4.9 million (US$5 million), a downward trend into the red compared to the C$1.5 million (US$1.5 million) gain posted a year ago.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter were down 46% to C$7.9 million (US$8.1 million), while adjusted EBITDA, which the company defines as EBITDA adjusted for other income and other income of the investee company, was also down 45% to C$8 million (US$8.2 million).

In segment sales, lumber sales fell 2% to C$134.9 million (US$137.6 million) on 318 million board feet sold. The results were driven largely by a 3% decline in lumber production to 294 million board feet. The average selling price for lumber during the quarter was C$424 (US$432) per thousand board feet.

Log sales improved by $2 million to C$22.9 million (US$23.4 million), as production remained steady at 795 thousand cubic meters. The average selling price for logs was C$69 (US$69) per cubic meter, up by $5 million from last year’s fourth quarter.

“Interfor expects to maintain operating rates at current levels or above for the next few quarters but will remain alert to changes in market activity in order to keep inventories in balance,” the company said.

For the year, the company more than doubled its net loss to C$13.5 million (US$13.4 million), even though sales grew 21% to C$758 million (US$750 million). Operating loss for the year was C$5.5 million (US$5.4 million).  

“Interfor expects to maintain operating rates at current levels or above for the next few quarters but will remain alert to changes in market activity in order to keep inventories in balance,” the company said.

For the year, the company more than doubled its net loss to C$13.5 million (US$13.4 million), even though sales grew 21% to C$758 million (US$750 million). Operating loss for the year was C$5.5 million (US$5.4 million).