BRITISH COLUMBIA

Interfor records adjusted net earnings of $3.7 million in 4th quarter

02/15/2013 02:32 EST | Updated 04/16/2013 05:12 EDT
VANCOUVER - Forest products company Interfor Ltd. (TSX:IFP.A) is reporting adjusted net income of $3.7 million, or seven-cents per share, in the fourth quarter of 2012.

The Vancouver-based company had lost $2.8 million in the same quarter of 2011. Excluding one-time items, Interfor lost $3.6 million during the quarter, or six cents per share

Interfor says its results were negatively impacted by the cost of rebuilding its Grand Forks sawmill, which was stopped on Nov. 9 and resumed on Dec. 3rd. The estimated impact in the fourth quarter was $2.8 million.

Since resuming operations, the Grand Forks mill has been moving through its start-up processes and is currently running at approximately 97 per cent of capacity.

Toward the end of the quarter, Interfor announced it had reached an agreement with Rayonier Inc. to acquire that company's wood products business based in Baxley, GA for $80 million.

That operation consists of three sawmills with a combined annual capacity of 360 million board feet of southern pine. The transaction will be financed from Interfor's existing credit lines and is scheduled to close March 1.

Interfor's lumber production in the fourth quarter was 347 million board feet, slightly below third quarter levels.

The company says business conditions are expected to continue to improve in 2013 as the U.S. housing market continues to strengthen and further growth is expected in China.