AINSWORTH LUMBER CO. LTD. RELEASES 2ND QUARTER EARNINGS.VANCOUVER, B.C.--(BUSINESS WIRE)--AUGUST 15, 1995--AINSWORTH LUMBER CO(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : ANS (ANS Communications, Inc, Purchase, NY) An ISP, Internet backbone and provider of private data network services, founded in 1990 as Advanced Network & Services, Inc., by IBM, MCI and Merit (consortium of Michigan universities). ) Ainsworth Lumber Co. Ltd. reports net income for the three months ended June 30, 1995 of $23,000 ($0.00 per share) on sales of $60.3 million. Net earnings during the same three month period in 1994 were $5.1 million ($0.35 per share) on sales of $48.0 million. On a year to date basis for the six months ended June 30, 1995, the Company earned $3.5 million, or $0.24 per share, compared to $13.3 million ($0.91 per share) for the six months ended June 30, 1994. Sales for the six month period ended June 30, 1995 were $122.7 million as opposed to $96.7 for the same six month period in 1994. Earnings during the second quarter of 1995 were negatively affected by continuing weak North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. lumber and OSB OSB abbr. Order of Saint Benedict markets, and high delivered log costs in prior periods. In addition, planned shut downs were carried out at the Clinton sawmill sawmill, installation or facility in which cut logs are sawed into standard-sized boards and timbers. The saws used in such an installation are generally of three types: the circular saw, which consists of a disk with teeth around its edge; the band saw, which and 100 Mile House OSB plant for capital upgrades and equipment modifications respectively. The Company's average lumber and OSB prices during the second quarter of 1995 were lower by 17 per cent and 11 per cent respectively than those of the prior quarter. Lumber prices during the quarter were 22 per cent lower than those of the comparable three month period in 1994. However, prices for the Company's woodchips increased by 27 per cent over the prior quarter, and further increases are expected during the balance of the year due to continued strong pulp markets and an ongoing fiber shortage in British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography . High log costs persisted throughout the second quarter as the Company's winter log inventories were depleted de·plete tr.v. de·plet·ed, de·plet·ing, de·pletes To decrease the fullness of; use up or empty out. [Latin d . These high cost log inventories arose from increased stumpage stump·age n. 1. Standing timber regarded as a commodity. 2. The value of standing timber. 3. The right to cut standing timber. stumpage 1. charges related to the B.C. Government's Forest Renewal Plan and delays in cutting permit approvals arising from the implementation of the Forest Practices Code. The expected cutting permit approvals were received early in the second quarter, and the problem has been largely resolved. The Company's Clinton sawmill was shut down for three weeks during the month of May for an $8 million capital upgrade which will provide higher lumber recoveries, lower production costs, and a higher value mix of lumber products. The newly installed sawmill equipment is expected to reach daily rated production capacity during the third quarter of this year. The Company's OSB plant at 100 Mile House, B.C. was completed in August, 1994. During the month of June the Company carried out a six day shutdown to perform equipment modifications. The modifications were successful, and during July, the plant reached 90 per cent of rated capacity. Construction of the Company's second OSB plant near Grande Prairie, Alberta “Grande Prairie” redirects here. For the city in Texas, see Grand Prairie, Texas. Grande Prairie is the main city in the northwestern part of the province of Alberta in Western Canada. is on schedule for a planned start-up during December, 1995. Design production capacity of the Grande Prairie facility is 540 million square feet (3/8 inch basis). Ainsworth Lumber has operated as a forest products company in British Columbia for more than forty years. In addition to its sawmill and OSB plant at 100 Mile House, Ainsworth operates a sawmill near Clinton, a sawmill and veneer plant at Lillooet, a specialty plywood plant at Savona, and a value-added plant at Abbotsford. CONTACT: 100 Mile House, B.C. Kevin Ainsworth, 604/395-6233 or Vancouver, B.C. Catherine Ainsworth, 604/661-3223 |
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