July 29, 2010 / 12:54 PM / 7 years ago

REFILE-UPDATE 1-Forestry company Tembec posts Q3 profit

(Refiles to add company name in headline)

* Q3 EPS C$0.59 vs loss C$0.38/shr year ago

* Revenue up 34 pct

July 29 (Reuters) - Canadian forestry company Tembec Inc (TMB.TO) posted a third-quarter profit, helped by higher prices at two of its segments, but said it expects pricing volatility to continue.

The company said price volatility is expected as relatively weak lumber demand balance against low supply chain inventories.

“An improvement in U.S. housing starts will be required to support more sustained lumber demand and prices in the medium and longer term,” the company added.

Net income for the quarter came in at C$59 million, or 59 Canadian cents a share, compared with a net loss of C$38 million, or 38 Canadian cents a share a year earlier.

The company said sales at its forest products segment rose due to higher prices and volumes for SPF lumber, and sales at its pulp segment rose primarily as a result of higher selling prices.

Tembec, which operates in North America and France, said sales totalled $545 million, up from $407 million last year.

Shares of the company closed at C$2.14 Wednesday on the Toronto Stock Exchange. (Reporting by Isheeta Sanghi in Bangalore; Editing by Vyas Mohan)

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