Improved OSB prices helped Ainsworth Lumber Co to an income of C$1.7m in the first quarter compared to a loss of C$11.7m in the preceding quarter.
Despite the negative impact caused by the stonger Canadian dollar, the company’s average OSB price increased by 5.5% on the previous quarter.
The company’s newest OSB plant in High Level, Alberta saw productivity improvements and operated at around 65% capacity during the quarter – a 17.7% increase on the same period in 2002.
Ainsworth is waiting to see what impact the British Columbia government’s Forestry Revitalisation Plan will have on its financial position and results.
The plan includes a 20% reduction in harvesting rights for licence holders and the introduction of an auction based timber pricing system. Ainsworth will lose some 29,600m3 of its existing allowable annual cut.
