MONTREAL, April 28, 2014 /CNW Telbec/ - Consolidated sales for the three-month period ended March 29, 2014, were $362 million, as compared to $407 million in the same quarter a year ago. The Company generated a net loss of $28 million or $0.28 per share in the March 2014 quarter compared to a net loss of $31 million or $0.31 per share in the March 2013 quarter. The March 2014 results were impacted by $24 million of non-cash charges related to the translation of US $ denominated debt, the settlement of defined benefit pension plan obligations and deferred income taxes. Operating earnings before depreciation, amortization and other items (adjusted EBITDA) was $18 million for the three-month period ended March 29, 2014, as compared to adjusted EBITDA of $24 million a year ago and adjusted EBITDA of $13 million in the prior quarter.
Business Segment Results
The Specialty Cellulose Pulp segment generated adjusted EBITDA of $18 million on sales of $128 million for the quarter ended March 2014, compared to adjusted EBITDA of $14 million on sales of $126 million in the prior quarter. The sales increase of $2 million was due to higher prices. Demand for specialty grades was flat while US and euro prices declined quarter-over-quarter. However, with the Canadian dollar weakening by 4.7% versus the US dollar and by 5.8% versus the euro, Canadian dollar equivalent pricing increased by $32 per tonne. Currency was also the most significant factor impacting viscose grade pulp prices, which increased by $59 per tonne quarter-over-quarter. This market remains oversupplied and prices are relatively low. Overall, pricing increased adjusted EBITDA by $2 million. Shipments were equal to 81% of capacity as compared to 78% in the prior quarter. Costs related to the Tartas mill declined by $9 million. In the prior quarter, the mill absorbed a 12-day maintenance shutdown and delays in commissioning new equipment installed during the shutdown affected productivity. The improvement in cost was partially offset by a $3 million negative impact of foreign exchange on the reported Canadian dollar costs of the Tartas mill. The profitability of the Temiscaming mill declined by $2 million as a result of a higher percentage of viscose grade shipments.
The Forest Products segment generated adjusted EBITDA of $3 million on sales of $112 million for the quarter ended March 2014, compared to negative adjusted EBITDA of $2 million on sales of $99 million in the prior quarter. Sales increased by $13 million due to higher lumber prices and shipments. Lumber shipments were equal to 83% of capacity versus 79% in the prior quarter. During the quarter, the random length lumber reference price declined by US $6 per mbf while the reference price for stud lumber increased by US $16 per mbf. While the gap between the two grades narrowed as expected, the US $64 per mbf differential remained relatively high. Currency was favourable as the Canadian dollar averaged US $0.907, a 4.7% decline from US $0.952 in the prior quarter. The net effect increased sales and adjusted EBITDA by $5 million or $28 per mbf. Costs increased by $1 million, primarily for fibre. The winter months are also seasonally higher operating cost periods.
The Paper Pulp segment generated adjusted EBITDA of $2 million on sales of $62 million for the quarter ended March 2014, compared to adjusted EBITDA of $1 million on sales of $73 million in the prior quarter. The $11 million decline in sales was caused by lower shipments, partially offset by higher prices. Market conditions for paper pulp remained relatively weak although demand was stable. Pulp shipments were equal to 70% of capacity as compared to 86% in the prior quarter. Export shipments in the most recent quarter were negatively impacted by winter storms that led to delays and congestion at several East Coast ports normally utilized by the Company. It is anticipated that the shortfall in shipments will be made up in the June 2014 quarter. The benchmark price (delivered China) for bleached eucalyptus kraft (BEK) decreased by US $15 per tonne. However, this decline did not affect high-yield pulp prices in the quarter. Currency was a positive as the Canadian dollar weakened during the quarter. Overall, average prices increased by $30 per tonne, improving adjusted EBITDA by $3 million. Manufacturing costs increased by $1 million, primarily due to higher fibre costs. Freight costs also increased by $1 million as the previously noted weather issues led to alternate shipping and logistic arrangements.
The Paper segment generated negative adjusted EBITDA of $1 million on sales of $84 million for the quarter ended March 2014, compared to adjusted EBITDA of $7 million on sales of $80 million in the prior quarter. Higher prices and shipments for coated bleached board, partially offset by lower newsprint shipments led to the $4 million increase in sales. The coated bleached board market improved slightly. The shipment to capacity ratio was 94% compared to 87% in the prior quarter. The US $ benchmark price for coated bleached board increased by US $8 per short ton. Currency was positive as the Canadian dollar weakened during the quarter. Overall, average selling prices for coated bleached board improved by $89 per tonne quarter-over-quarter, increasing adjusted EBITDA by $4 million. Bleached board manufacturing costs increased by $3 million, primarily for fibre and energy. The newsprint market remained weak with continued decreases in North American demand. The shipment to capacity ratio was 81% compared to 89% in the prior quarter. The US $ benchmark price for newsprint was unchanged at US $605 per tonne. However, the average US $ price realizations declined by US $19 per tonne. The weaker Canadian dollar offset this decrease and newsprint pricing remained relatively unchanged from the prior quarter. The cold weather experienced in North America in February and March 2014 led to a shortage of natural gas and indirectly impacted the cost of electricity in the Province of Ontario. To partially mitigate the impact, the Kapuskasing newsprint mill took six days of unplanned downtime in the quarter. The overall impact was an $8 million increase in manufacturing costs, including $7 million for energy.
Other items
In September 2013, the Company announced the BC Lands Sale Initiative with the objective of realizing up to $75 million in gross proceeds by December 2014. During the December 2013 quarter, the Company closed the first two BC land sales transactions for total proceeds of $23 million. The Company did not sell any additional lands in the March 2014 quarter. The remaining BC lands have been classified as assets held for sale. On April 25, 2014, the Company announced the conditional sale of 49,500 hectares of BC land for a price of $35 million. The consideration also includes deferred payments of at least $2 million. The closing of the sale is conditional on the purchaser obtaining adequate financing. The Company also revised the BC Land Sale Initiative target to $70 million. There can be no assurance that the above transaction will be completed or that the Company will attain its stated objective.
Outlook
Overall, the March 2014 quarterly results were lower than anticipated. The relatively harsh winter conditions experienced in Eastern Canada and the U.S. Northeast led to higher energy costs, reduced productivity at certain facilities and delays in offshore shipments. The combined effect reduced quarterly adjusted EBITDA and operating earnings by approximately $10 million. The weaker Canadian dollar provided a partial offset. The Specialty Cellulose segment results improved by $4 million due to lower costs at the Tartas mill. The annual maintenance outage combined with a difficult start-up of a new bleaching tower led to increased costs in the prior quarter. The decrease in euro and US dollar specialty grade prices occurred in January, as previously disclosed. However, the weaker Canadian dollar largely offset the negative impact on specialty cellulose sales. Currency also generated the improvement in viscose grade prices. This market remains oversupplied and US dollar prices are relatively low. The improved results in the Forest Products segment were also currency driven as the lumber markets went "sideways" and US dollar prices were similar quarter-over-quarter. Stud lumber prices continued to lag random length lumber prices by a considerable margin. Improved demand and prices are anticipated in the June 2014 quarter. The summer months are also lower cost periods for the sawmills. The Paper Pulp segment results saw a small improvement, with higher prices partially offset by lower shipments due to weather related issues. The Company anticipates that it will make up most of the shipment shortfall in the June 2014 quarter. The Paper segment performance was the most negatively impacted by weather related issues and posted its lowest quarterly results in nearly five years. The cold weather led to natural gas shortages and higher prices. This in turn led to very high electricity prices in the Province of Ontario, significantly increasing costs at the Kapuskasing newsprint facility. A return to profitability is anticipated in the June 2014 quarter as energy costs decline with the warmer weather.
The Company continues with its capital expenditure program, with a strong emphasis on its two specialty cellulose mills. The cornerstone of the program is the high-pressure boiler and turbine currently under construction at the Temiscaming, Quebec, site. The project will materially improve the mill's cost structure and margins. Of the total forecast cost of $235 million, $201 million has been spent on the Temiscaming specialty cellulose project to the end of the March 2014 quarter. In September 2013, the Company launched its BC Lands Sale Initiative. The Company closed the first two lands sales transactions for total proceeds of $23 million in the December 2013 quarter. The Company recently announced the conditional sale of additional parcels for proceeds of $35 million and a further $2 million in future payments. The sale is conditional on the purchaser obtaining adequate financing. The objective is to realize up to $70 million in land sales by December 2014 and considerable effort will be deployed over the next few quarters to attain this objective.
Tembec is a manufacturer of forest products - lumber, pulp, paper and specialty cellulose - and a global leader in sustainable forest management practices. Principal operations are in Canada and France. With annual sales of approximately $1.6 billion, Tembec has 3,500 employees and is listed on the TSX (TMB). The full quarterly report, including the interim Management Discussion and Analysis, the interim financial statements and the accompanying notes for the quarter ended March 29, 2014, can be obtained on Tembec's website at www.tembec.com or on SEDAR at www.sedar.com.
The Company`s financial results have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). All financial references are stated in Canadian dollars, unless otherwise noted. All references to quarterly information relate to Tembec's fiscal quarters. Adjusted EBITDA and certain other financial measures utilized in the press release are non-IFRS financial measures. As they have no standardized meaning prescribed by IFRS, they may not be comparable to similar measures presented by other companies. Non-IFRS financial measures are described in the Definitions section on the last page of the interim Management Discussion and Analysis (MD&A).
This press release includes "forward-looking statements" within the meaning of securities laws. Such statements relate, without limitation, to the Company's or management's objectives, projections, estimates, expectations or predictions of the future and can be identified by words such as "may", "will", "could", "anticipate", "estimate", "expect" and "project", the negative or variations thereof, and expressions of similar nature. Forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience, information available to it and its perception of future developments. Such statements are subject to a number of risks and uncertainties, including, but not limited to, changes in foreign exchange rates, product selling prices, raw material and operating costs and other factors identified in the Company's periodic filings with securities regulatory authorities. Many of these risks are beyond the control of the Company and, therefore, may cause actual actions or results to materially differ from those expressed or implied herein. The forward-looking statements contained herein reflect the Company's expectations as of the date hereof and are subject to change after such date. The Company disclaims any intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable securities legislation.
TEMBEC INC. | ||||
CONSOLIDATED BALANCE SHEETS | ||||
(unaudited) (in millions of Canadian dollars) | ||||
Mar. 29, 2014 |
Sept. 28, 2013 (note 2) |
|||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ 23 | $ 73 | ||
Restricted cash | 8 | 1 | ||
Trade and other receivables | 150 | 157 | ||
Income tax receivable | 3 | - | ||
Inventories (note 3) | 312 | 237 | ||
Prepaid expenses | 8 | 6 | ||
Assets classified as held for sale | 7 | 7 | ||
511 | 481 | |||
Property, plant and equipment (note 4) | 572 | 496 | ||
Biological assets | 2 | 5 | ||
Employee future benefits | 32 | 24 | ||
Other long-term receivables | 10 | 10 | ||
Deferred tax assets | 6 | 5 | ||
$ 1,133 | $ 1,021 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current liabilities: | ||||
Operating bank loans (note 5) | $ 81 | $ 57 | ||
Trade, other payables and accrued charges | 232 | 195 | ||
Interest payable | 11 | 10 | ||
Income tax payable | - | 8 | ||
Provisions | 5 | 6 | ||
Current portion of long-term debt (note 6) | 19 | 16 | ||
348 | 292 | |||
Long-term debt (note 6) | 430 | 369 | ||
Provisions | 11 | 12 | ||
Employee future benefits | 124 | 127 | ||
Other long-term liabilities | 2 | 2 | ||
915 | 802 | |||
Shareholders' equity: | ||||
Share capital | 567 | 567 | ||
Deficit | (373) | (354) | ||
Accumulated other comprehensive earnings | 24 | 6 | ||
218 | 219 | |||
$ 1,133 | $ 1,021 |
The accompanying notes are an integral part of these interim consolidated financial statements.
TEMBEC INC. | |||||||
CONSOLIDATED STATEMENTS OF NET EARNINGS (LOSS) | |||||||
Quarters and six months ended March 29, 2014 and March 30, 2013 | |||||||
(unaudited) (in millions of Canadian dollars, unless otherwise noted) | |||||||
Quarters | Six months | ||||||
2014 |
2013 (note 2) |
2014 |
2013 (note 2) |
||||
Sales | $ 362 | $ 407 | $ 716 | $ 783 | |||
Freight and other deductions | 44 | 54 | 88 | 104 | |||
Lumber export taxes | (1) | - | - | 1 | |||
Cost of sales (excluding depreciation and amortization) | 284 | 310 | 562 | 596 | |||
Selling, general and administrative | 18 | 19 | 35 | 38 | |||
Share-based compensation | (1) | - | - | 1 | |||
Depreciation and amortization | 9 | 9 | 17 | 20 | |||
Other items (note 8) | 6 | 24 | (8) | 25 | |||
Operating earnings (loss) | 3 | (9) | 22 | (2) | |||
Interest, foreign exchange and other | 9 | 10 | 18 | 22 | |||
Exchange loss on long-term debt | 11 | 6 | 23 | 10 | |||
Net finance costs (note 9) | 20 | 16 | 41 | 32 | |||
Loss before income taxes | (17) | (25) | (19) | (34) | |||
Income tax expense (note 10) | 11 | 6 | 7 | 12 | |||
Net loss | $ (28) | $ (31) | $ (26) | $ (46) | |||
Basic and diluted net loss in dollars per share (note 7) | $ (0.28) | $ (0.31) | $ (0.26) | $ (0.46) |
TEMBEC INC. | |||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (LOSS) | |||||||||
Quarters and six months ended March 29, 2014 and March 30, 2013 | |||||||||
(unaudited) (in millions of Canadian dollars) | |||||||||
Quarters | Six months | ||||||||
2014 |
2013 (note 2) |
2014 |
2013 (note 2) |
||||||
Net loss | $ (28) | $ (31) | $ (26) | $ (46) | |||||
Other comprehensive earnings (loss), net of income taxes: | |||||||||
Items that will never be reclassified to earnings (loss): | |||||||||
Defined benefit pension plans and other benefit plans (note 11) | (20) | 68 | 9 | 73 | |||||
Income tax recovery (expense) | 5 | - | (2) | - | |||||
(15) | 68 | 7 | 73 | ||||||
Items that may be reclassified to earnings (loss) in future periods: | |||||||||
Foreign currency translation differences for foreign operations | 7 | (2) | 18 | 4 | |||||
Other comprehensive earnings (loss) for the period | (8) | 66 | 25 | 77 | |||||
Total comprehensive earnings (loss) | $ (36) | $ 35 | $ (1) | $ 31 |
The accompanying notes are an integral part of these interim consolidated financial statements.
TEMBEC INC. | ||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | ||||||||
Quarters ended March 29, 2014 and March 30, 2013 | ||||||||
(unaudited) (in millions of Canadian dollars) | ||||||||
Quarter ended March 29, 2014 | ||||||||
Share capital |
Translation of foreign operations |
Deficit | Shareholders' equity |
|||||
Balance - beginning of period, December 28, 2013 | $ 567 | $ 17 | $ (330) | $ 254 | ||||
Net loss for the period | - | - | (28) | (28) | ||||
Other comprehensive earnings (loss), net of income taxes: | ||||||||
Defined benefit pension plans and other benefit plans (note 11) | - | - | (20) | (20) | ||||
Income tax recovery | - | - | 5 | 5 | ||||
Foreign currency translation differences for foreign operations | - | 7 | - | 7 | ||||
Balance - end of period, March 29, 2014 | $ 567 | $ 24 | $ (373) | $ 218 | ||||
Quarter ended March 30, 2013 (note 2) | ||||||||
Share capital |
Translation of foreign operations |
Deficit | Shareholders' equity |
|||||
Balance - beginning of period, December 29, 2012 | $ 567 | $ (3) | $ (465) | $ 99 | ||||
Net loss for the period | - | - | (31) | (31) | ||||
Other comprehensive earnings (loss), net of income taxes: | ||||||||
Defined benefit pension plans and other benefit plans (note 11) | - | - | 68 | 68 | ||||
Foreign currency translation differences for foreign operations | - | (2) | - | (2) | ||||
Issue of warrants | - | - | - | - | ||||
Balance - end of period, March 30, 2013 | $ 567 | $ (5) | $ (428) | $ 134 |
The accompanying notes are an integral part of these interim consolidated financial statements.
TEMBEC INC. | ||||||
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | ||||||
Six months ended March 29, 2014 and March 30, 2013 | ||||||
(unaudited) (in millions of Canadian dollars) | ||||||
Six months ended March 29, 2014 | ||||||
Share capital |
Translation of foreign operations |
Deficit | Shareholders' equity |
|||
Balance - beginning of year, September 28, 2013 | $ 567 | $ 6 | $ (354) | $ 219 | ||
Net loss for the period | - | - | (26) | (26) | ||
Other comprehensive earnings (loss), net of income taxes: | ||||||
Defined benefit pension plans and other benefit plans (note 11) | - | - | 9 | 9 | ||
Income tax expense | - | - | (2) | (2) | ||
Foreign currency translation differences for foreign operations | - | 18 | - | 18 | ||
Balance - end of period, March 29, 2014 | $ 567 | $ 24 | $ (373) | $ 218 | ||
Six months ended March 30, 2013 (note 2) | ||||||
Share capital |
Translation of foreign operations |
Deficit | Shareholders' equity |
|||
Balance - beginning of year, September 29, 2012 | $ 564 | $ (9) | $ (455) | $ 100 | ||
Net loss for the period | - | - | (46) | (46) | ||
Other comprehensive earnings (loss), net of income taxes: | ||||||
Defined benefit pension plans and other benefit plans (note 11) | - | - | 73 | 73 | ||
Foreign currency translation differences for foreign operations | - | 4 | - | 4 | ||
Issue of warrants | 3 | - | - | 3 | ||
Balance - end of period, March 30, 2013 | $ 567 | $ (5) | $ (428) | $ 134 |
The accompanying notes are an integral part of these interim consolidated financial statements.
TEMBEC INC. | |||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
Quarters and six months ended March 29, 2014 and March 30, 2013 | |||||||||
(unaudited) (in millions of Canadian dollars) | |||||||||
Quarters | Six months | ||||||||
2014 |
2013 (note 2) |
2014 |
2013 (note 2) |
||||||
Cash flows from operating activities: | |||||||||
Net loss | $ (28) | $ (31) | $ (26) | $ (46) | |||||
Adjustments for: | |||||||||
Depreciation and amortization | 9 | 9 | 17 | 20 | |||||
Net finance costs (note 9) | 20 | 16 | 41 | 32 | |||||
Income tax expense (note 10) | 11 | 6 | 7 | 12 | |||||
Income tax paid | (17) | (6) | (20) | (8) | |||||
Excess cash contributions over employee future benefits expense | (5) | (6) | (13) | (17) | |||||
Impairment loss (note 8) | - | 22 | - | 22 | |||||
Gain on sale of assets (note 8) | (1) | - | (21) | (2) | |||||
Settlement loss on pension plan (note 8) | 7 | - | 7 | - | |||||
Other | (1) | 1 | 4 | (3) | |||||
(5) | 11 | (4) | 10 | ||||||
Changes in non-cash working capital: | |||||||||
Trade and other receivables | 25 | (20) | 8 | 4 | |||||
Inventories | (65) | (33) | (74) | (31) | |||||
Prepaid expenses | (3) | (7) | (2) | (5) | |||||
Trade, other payables and accrued charges | 33 | 33 | 35 | 2 | |||||
(10) | (27) | (33) | (30) | ||||||
(15) | (16) | (37) | (20) | ||||||
Cash flows from investing activities: | |||||||||
Disbursements for property, plant and equipment | (33) | (22) | (75) | (62) | |||||
Proceeds from sale of assets (note 8) | 1 | - | 24 | 2 | |||||
Change in restricted cash | - | - | (7) | 4 | |||||
Other | - | 1 | - | 1 | |||||
(32) | (21) | (58) | (55) | ||||||
Cash flows from financing activities: | |||||||||
Change in operating bank loans | 19 | 17 | 23 | 18 | |||||
Increase in long-term debt | 8 | - | 41 | 24 | |||||
Repayments of long-term debt | (1) | (1) | (2) | (2) | |||||
Interest paid | (1) | (1) | (21) | (19) | |||||
25 | 15 | 41 | 21 | ||||||
(22) | (22) | (54) | (54) | ||||||
Foreign exchange gain on cash and cash equivalents held in foreign currencies | 1 | - | 4 | 1 | |||||
Net decrease in cash and cash equivalents | (21) | (22) | (50) | (53) | |||||
Cash and cash equivalents, beginning of period | 44 | 56 | 73 | 87 | |||||
Cash and cash equivalents, end of period | $ 23 | $ 34 | $ 23 | $ 34 |
The accompanying notes are an integral part of these interim consolidated financial statements.
TEMBEC INC. | ||||||||||||||
BUSINESS SEGMENT INFORMATION | ||||||||||||||
Quarters ended March 29, 2014 and March 30, 2013 | ||||||||||||||
(unaudited) (in millions of Canadian dollars) | ||||||||||||||
Quarter ended March 29, 2014 | ||||||||||||||
Forest Products |
Specialty Cellulose Pulp |
Paper Pulp |
Paper | Corporate | Consolidation adjustments |
Consolidated | ||||||||
Sales: | ||||||||||||||
External | $ 95 | $ 128 | $ 55 | $ 84 | $ - | $ - | $ 362 | |||||||
Internal | 17 | - | 7 | - | 4 | (28) | - | |||||||
112 | 128 | 62 | 84 | 4 | (28) | 362 | ||||||||
Freight and other deductions | 11 | 11 | 11 | 11 | - | - | 44 | |||||||
Lumber export taxes | (1) | - | - | - | - | - | (1) | |||||||
Cost of sales | 96 | 94 | 47 | 71 | 4 | (28) | 284 | |||||||
Selling, general and administrative | 3 | 5 | 2 | 3 | 5 | - | 18 | |||||||
Share-based compensation | - | - | - | - | (1) | - | (1) | |||||||
Earnings (loss) before the following (adjusted EBITDA): | 3 | 18 | 2 | (1) | (4) | - | 18 | |||||||
Depreciation and amortization | 2 | 3 | 3 | 1 | - | - | 9 | |||||||
Other items (note 8) | - | - | - | - | 6 | - | 6 | |||||||
Operating earnings (loss) | $ 1 | $ 15 | $ (1) | $ (2) | $ (10) | $ - | $ 3 | |||||||
Additions to property, plant and equipment | $ 1 | $ 40 | $ 1 | $ - | $ - | $ - | $ 42 | |||||||
Total assets | $ 200 | $ 595 | $ 152 | $ 145 | $ 41 | $ - | $ 1,133 | |||||||
Total liabilities | $ 82 | $ 242 | $ 33 | $ 73 | $ 485 | $ - | $ 915 | |||||||
Quarter ended March 30, 2013 (note 2) | ||||||||||||||
Forest Products |
Specialty Cellulose Pulp |
Paper Pulp |
Paper | Corporate | Consolidation adjustments |
Consolidated | ||||||||
Sales: | ||||||||||||||
External | $ 86 | $ 120 | $ 114 | $ 87 | $ - | $ - | $ 407 | |||||||
Internal | 18 | - | 8 | - | 2 | (28) | - | |||||||
104 | 120 | 122 | 87 | 2 | (28) | 407 | ||||||||
Freight and other deductions | 10 | 9 | 24 | 11 | - | - | 54 | |||||||
Lumber export taxes | - | - | - | - | - | - | - | |||||||
Cost of sales | 84 | 92 | 92 | 68 | 2 | (28) | 310 | |||||||
Selling, general and administrative | 3 | 5 | 2 | 3 | 6 | - | 19 | |||||||
Share-based compensation | - | - | - | - | - | - | - | |||||||
Earnings (loss) before the following (adjusted EBITDA): | 7 | 14 | 4 | 5 | (6) | - | 24 | |||||||
Depreciation and amortization | 2 | 3 | 3 | 1 | - | - | 9 | |||||||
Other items (note 8) | - | - | 22 | - | 2 | - | 24 | |||||||
Operating earnings (loss) | $ 5 | $ 11 | $ (21) | $ 4 | $ (8) | $ - | $ (9) | |||||||
Additions to property, plant and equipment | $ - | $ 22 | $ 1 | $ 2 | $ 1 | $ - | $ 26 | |||||||
Total assets | $ 196 | $ 442 | $ 278 | $ 120 | $ 24 | $ - | $ 1,060 | |||||||
Total liabilities | $ 80 | $ 230 | $ 68 | $ 124 | $ 424 | $ - | $ 926 |
TEMBEC INC. | |||||||||||||||||
BUSINESS SEGMENT INFORMATION | |||||||||||||||||
Six months ended March 29, 2014 and March 30, 2013 | |||||||||||||||||
(unaudited) (in millions of Canadian dollars) | |||||||||||||||||
Six months ended March 29, 2014 | |||||||||||||||||
Forest Products |
Specialty Cellulose Pulp |
Paper Pulp |
Paper | Corporate | Consolidation adjustments |
Consolidated | |||||||||||
Sales: | |||||||||||||||||
External | $ 178 | $ 254 | $ 120 | $ 164 | $ - | $ - | $ 716 | ||||||||||
Internal | 33 | - | 15 | - | 7 | (55) | - | ||||||||||
211 | 254 | 135 | 164 | 7 | (55) | 716 | |||||||||||
Freight and other deductions | 20 | 21 | 25 | 22 | - | - | 88 | ||||||||||
Lumber export taxes | - | - | - | - | - | - | - | ||||||||||
Cost of sales | 184 | 191 | 104 | 131 | 7 | (55) | 562 | ||||||||||
Selling, general and administrative | 6 | 10 | 3 | 5 | 11 | - | 35 | ||||||||||
Share-based compensation | - | - | - | - | - | - | - | ||||||||||
Earnings (loss) before the following (adjusted EBITDA): | 1 | 32 | 3 | 6 | (11) | - | 31 | ||||||||||
Depreciation and amortization | 3 | 7 | 5 | 2 | - | - | 17 | ||||||||||
Other items (note 8) | - | - | - | - | (8) | - | (8) | ||||||||||
Operating earnings (loss) | $ (2) | $ 25 | $ (2) | $ 4 | $ (3) | $ - | $ 22 | ||||||||||
Additions to property, plant and equipment | $ 3 | $ 70 | $ 2 | $ 1 | $ - | $ - | $ 76 | ||||||||||
Total assets | $ 200 | $ 595 | $ 152 | $ 145 | $ 41 | $ - | $ 1,133 | ||||||||||
Total liabilities | $ 82 | $ 242 | $ 33 | $ 73 | $ 485 | $ - | $ 915 | ||||||||||
Six months ended March 30, 2013 (note 2) | |||||||||||||||||
Forest Products |
Specialty Cellulose Pulp |
Paper Pulp |
Paper | Corporate | Consolidation adjustments |
Consolidated | |||||||||||
Sales: | |||||||||||||||||
External | $ 171 | $ 223 | $ 224 | $ 165 | $ - | $ - | $ 783 | ||||||||||
Internal | 34 | - | 15 | - | 6 | (55) | - | ||||||||||
205 | 223 | 239 | 165 | 6 | (55) | 783 | |||||||||||
Freight and other deductions | 19 | 16 | 47 | 22 | - | - | 104 | ||||||||||
Lumber export taxes | 1 | - | - | - | - | - | 1 | ||||||||||
Cost of sales | 170 | 165 | 184 | 126 | 6 | (55) | 596 | ||||||||||
Selling, general and administrative | 6 | 10 | 4 | 6 | 12 | - | 38 | ||||||||||
Share-based compensation | - | - | - | - | 1 | - | 1 | ||||||||||
Earnings (loss) before the following (adjusted EBITDA): | 9 | 32 | 4 | 11 | (13) | - | 43 | ||||||||||
Depreciation and amortization | 4 | 6 | 8 | 2 | - | - | 20 | ||||||||||
Other items (note 8) | - | - | 22 | - | 3 | - | 25 | ||||||||||
Operating earnings (loss) | $ 5 | $ 26 | $ (26) | $ 9 | $ (16) | $ - | $ (2) | ||||||||||
Additions to property, plant and equipment | $ 2 | $ 48 | $ 6 | $ 3 | $ 1 | $ - | $ 60 | ||||||||||
Total assets | $ 196 | $ 442 | $ 278 | $ 120 | $ 24 | $ - | $ 1,060 | ||||||||||
Total liabilities | $ 80 | $ 230 | $ 68 | $ 124 | $ 424 | $ - | $ 926 |
SOURCE: Tembec
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Investor Contact:
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Tel: 819 627-4268
E-mail: [email protected]
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Tel.: 416 775-2819
E-mail: [email protected]
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