Tembec says quarter weaker than expected

Quebec-based forestry company Tembec Inc. says it has just endured a tough winter quarter that resulted in a $40-million loss. The loss amounted to 40 cents per share, which was deeper than a year-earlier loss of 28 cents per share or $28 million. Tembec said winter weather had a bigger impact than anticipated. It also said the weakening of the Canadian dollar produced a $37-million loss related to debt issued in U.S. dollars. Overall sales were down nearly four per cent, dropping to $348 million in the second quarter ended March 28 from $362 million a year earlier. Nearly one-third of Tembec’s revenue was from sales of specialty pulp segment, another third was from forest products and the remainder was from sales of paper and paper pulp.