VANCOUVER—Ainsworth Lumber Co. Ltd. said its third-quarter loss shrank compared to last year after production curtailments and thanks to a significant foreign exchange gain.
The Vancouver-based firm reported a third-quarter loss of $37.2 million, or $2.54 per share, compared to a loss of $77.5 million, or $5.29 per share, for the same period last year.
Sales in the quarter ended Sept. 30 were $150.8 million compared to $181.1 million in the 2006 quarter.
The company said low oriented strandboard sales prices and reduced shipment volumes after production curtailments were partially offset by a $69.1 million foreign exchange gain on long-term debt.
Ainsworth closed a production line at its Bemidji facility in 2006, and both the Cook and Grand Rapids facilities in Minnesota were shut down on Sept. 22, 2006 in response to high production costs and low market prices.
The Cook facility resumed production this past March 21 but the Grand Rapids facility remains closed.
The results also include a $52.1 million tax valuation allowance on previously benefited tax losses, an $8.6 million impairment charge on intangible assets, and an $8.6 million legal settlement provision.