Consolidated sales for the three-month period ended March 27, 2010 were $476 million, up from $417 million in the comparable period of the prior year. The Company generated nil net earnings in the March 2010 quarter compared to a net loss of $99 million or $0.99 per share in the March 2009 quarter. Earnings before non-recurring items, interest, income taxes, depreciation, amortization and other non-operating expenses (EBITDA) was $32 million for the three-month period ended March 27, 2010, as compared to negative EBITDA of $63 million a year ago and EBITDA of $4 million in the prior quarter.
The Forest Products segment generated negative EBITDA of $3 million on sales of $100 million. This compares to negative EBITDA of $8 million on sales of $95 million in the prior quarter. Sales increased by $5 million due to higher prices for SPF lumber. Demand for SPF lumber remained relatively weak with shipments equal to 44% of capacity, unchanged from the prior quarter. US $ reference prices for random lumber increased by approximately US $55 per mbf while stud lumber increased by US $53 per mbf. Currency had a negative effect on pricing as the Canadian dollar averaged US $0.960, a 2% increase from US $0.945 in the prior quarter. The net price effect was an increase in EBITDA of $5 million or $28 per mbf. Sawmill costs were relatively unchanged from the prior quarter. During the March quarter, the Company recorded a favourable adjustment of $4 million on the carrying values of log and lumber inventories. In the prior quarter, the Company recorded a favourable adjustment of $5 million related to the carrying values of logs and lumber inventories. During the March quarter, the Company incurred $3 million of lumber export taxes, up from $2 million in the prior quarter. Lumber export taxes are payable based on the 2006 agreement between Canada and the United States. Applicable export tax rates may vary based upon selling prices. During the March quarter, the Company incurred a tax of 15% on U.S. shipments, unchanged from the prior quarter.
