Vancouver, B.C.-based forest products company Ainsworth Lumber reported a net loss of C$42.7 million (US$34.6 million) for the third quarter ended Sept. 30, compared to a net loss of C$37.2 million (US$30.2 million) for the same period last year.
Sales for the quarter stood at C$115.3 million (US$93.5 million), down 24 percent from C$150.8 million (US$122.2 million) in the year-ago period. According to the company, reduced shipment volumes due to production curtailments led to the decrease in sales.
Year to date, the company reported a net loss of C$165.1 million (US$133.7 million), a C$133.1 million increase in losses from the same period in 2007.
In July, Ainsworth completed a financial recapitalization, resulting in the "realignment of equity and non-equity interests, significant de-leveraging of the balance sheet and a strengthened liquidity position." Following the recapitalization, the company's management team moved to lower overhead costs with a decrease in staff, office space and administrative costs.
Third-quarter OSB shipments were 481,354 msf , down 25 percent from the same period last year, due to decreased customer demand and plant closures. The company permanently closed its Grand Rapids, Minn., OSB mill and indefinitely curtailed production at two other northern Minnesota-based OSB mills in Cook and Bemidji.