Mill closures lead to Interfor loss28 April 2008
The Vancouver-based wood products producer said the loss includes restructuring costs for the Albion remanufacturing plant and idle Queensboro sawmill, both of which were closed during the quarter.
Before restructuring costs, Interfor's net income was C$500,000 and only C$100,000 short of the figure for the first quarter of 2007.
Falling timber prices also impacted the company's results, with 2x4 and pine notable examples, although prices for cedar and off-shore product lines has "remained firm during the quarter".
"From an operational standpoint, we will continue to maintain a tight control on cash by managing production against viable orders," said Interfor president and chief executive officer Duncan Davies. "We will also remain alert to opportunities for growth in regions and products with attractive fundamentals."
Interfor added that work on its Adams Lake sawmill, which is being built to replace its existing facility in the area, is "on time and on budget" and is due to commence operation in the fourth quarter.