April 29, 2009 / 1:02 PM / in 9 years

UPDATE 1-Tembec posts quarterly loss amid housing slump

TORONTO, April 29 (Reuters) - Canadian forest products company Tembec Inc (TMB.TO) reported a quarterly loss on Wednesday as the recession and slumping housing market sent prices and demand for pulp and lumber sharply lower.

The loss came to C$99 million or 99 Canadian cents a share, in the second quarter ended on March 28. The company posted losses of C$42 million, or 49 Canadian cents per share, for January and February 2008 and C$17 million, or 17 Canadian cents a share, for March 2008.

Tembec said the year-earlier results consisted of two periods because a financial recapitalization on Feb. 29, 2008, required it to implement “fresh start” accounting.

Revenue for the quarter was C$417 million, down from C$593 million a year earlier.

Results for the latest quarter included an unfavorable adjustment of C$20 million for the carrying values of logs, lumber and pulp inventories.

“Looking ahead, lumber markets will remain challenging as there are no clear signs of a U.S. housing recovery,” the company said in a statement. “Pulp markets are weak, and we expect this downturn to last for several quarters.” (Reporting by Andrea Hopkins; Editing by Lisa Von Ahn)

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