November 17, 2010 / 3:21 PM / 7 years ago

UPDATE 1-Tembec Q4 trails market estimates as shipments decline

* Q4 EPS C$0.02 vs est C$0.14

* Revenue down 2 pct to C$444 mln, lags est C$464 mln

* Shares dip 3 pct

Nov 17 (Reuters) - Canadian forestry company Tembec Inc (TMB.TO) posted fourth-quarter results that missed market estimates, hurt by lower shipments.

The company, which produces lumber, paper and pulp, posted a profit of C$2 million, or 2 Canadian cents a share, compared with a net loss of C$17 million, or 17 Canadian cents a share, last year.

Revenue fell 2 percent to C$444 million in the quarter.

Analysts on an average were expecting the company to earn 14 Canadian cents a share, on revenue of C$464 million, according to Thomson Reuters I/B/E/S.

The company said demand for Spruce-Pine-Fir (SPF) lumber, which is used for residential and commercial construction, remained relatively weak.

SPF lumber shipments were equal to 52 percent of capacity, compared with 56 percent last year.

Pulp shipments were equal to 82 percent of capacity, down from 96 percent last year.

The company’s shares, which have gained more than half their value since Tembec shut its Manitoba newsprint mill in September, were down 3 percent at C$2.55 on Wednesday on the Toronto Stock Exchange. (Reporting by Arnika Thakur in Bangalore; Editing by Anne Pallivathuckal)

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