Ainsworth records net income of $10.1 million in third quarter
Ainsworth Lumber Co. Ltd. has recorded a net income of $10.1 million in the third quarter of 2010, compared to net income of $22.3 million in the third quarter of 2009, despite an increase in gross profit of $6.0 million. This reduction is primarily due to a $30.0 million decrease in the unrealized foreign exchange gain on long-term debt.
Ainsworth President and CEO Rick Huff said, “We are pleased to report another quarter of strong performance for Ainsworth in terms of sales and EBITDA margins, despite a sharp decline in OSB prices. While macro economic trends in the U.S. indicate that a recovery in home building will be protracted, Ainsworth, as evidenced by its performance in the third quarter, is continuing to build a solid foundation for the business. Our aim is to have the flexibility to capitalize on near-term opportunities as well as the financial strength and incremental capacity to take full advantage of a return to normalized building over the longer-term.”
“As we look ahead to the fourth quarter and the end of 2010, we will continue to fine tune our operations, capitalize on opportunities to grow our share in international markets, and further expand the mix of value-added product sales,” added Mr. Huff.
As previously disclosed, Ainsworth reached new four-year labour agreements with employees at its 100 Mile House, British Columbia and Barwick, Ontario mills during the third quarter. The Company now has long-term labour agreements in place with employees at all its unionized facilities.