The company said a significant improvement in housing activity boosted lumber consumption during the second quarter, contributing to positive earnings before interest, tax, depreciation and amortisation of C$2.9m (2011: C$-9.8m).
Eacom still made a net loss of C$709,000 from sales of C$65.2m. Prices improved in the second quarter, with stud products up 18% from the first quarter.
During the second quarter Eacom started capital improvements at its Nairn Centre and Elk Lake mills, with completions scheduled in the third and fourth quarters respectively.
The upgrades will partially offset the capacity lost at fire-hit Timmins. A significant portion of Eacom’s investment will be reimbursed from its C$7m insurance payment related to business interruption due to the Timmins mill fire.
To date, Eacom has ralso received a further C$10m for damage of the mill.
