THE CANADIAN PRESS -- BURNABY, B.C. - Taiga Building Products Ltd. suspended its dividend on the weekend after reporting a fourth quarter net loss and lower annual profits.
The distributor of lumber and other building products said "in light of the moderating financial performance of the company, the board of directors have decided not to declare and pay the first instalment payment of its semi-annual dividend policy with respect of the 2011 fiscal year's net earnings."
Taiga said it will decide on whether to pay the second instalment of its annual dividend next January.
In its financial report, Taiga said its annual net profits for fiscal 2011 fell to $4.6 million from $12 million a year earlier as the company was hit by lower gross margin, reduced foreign exchange gains and higher interest expenses.
Annual sales for the year ended March 31 rose 2.6 per cent to $955.6 million from $931.5 million, Taiga said on the weekend.
For the fourth quarter, the Burnaby, B.C.-based company generated a net loss of $1.8 million compared to net earnings of $1.1 million in the same quarter last year.
Quarterly sales fell to $202.1 million from $223.1 million.