A decline in OSB prices has been blamed for a dip in second-quarter profits at Ainsworth Lumber Co Ltd.
The Canadian company recorded net profits of C$31.3m, down from C$71.4m a year ago.
Sales grew to C$329.9m from C$241.1m, reflecting the acquisition of four OSB production facilities during 2004. OSB volumes increased by 112% but Ainsworth’s per unit costs also grew by 15.9% as a result of soaring wood fibre, resin and wax prices.
Chairman and chief executive officer Brian Ainsworth said: “While the price for OSB has declined from the record levels experienced in 2004, demand for engineered wood products remains strong.”
He said Ainsworth’s expertise in engineered wood products, coupled with the continued strength of residential construction, positioned the company well to address market influences.
