OREANDA-NEWS. August 14, 2014. Sales of USD 117.4 million in the 2Q 2014 were USD 10.1 million lower than sales of USD 127.5 million for the same period in 2013.

 The decrease in sales was mainly due to a 24% decrease in realized pricing, as the company said in the press release received by Lesprom Network.

In the first half of 2014, sales were USD 225.2 million compared to USD 269.3 million in the same period of 2013. The USD 44.1 million decrease was related to a 25% decrease in realized pricing, partially offset by an 11% increase in sales volumes and the same factors noted above. The increase in volume from High Level was partially offset by transportation issues that limited shipments during the first quarter of 2014.

Adjusted EBITDA was USD 13.1 million in the 2Q 2014 compared to USD 50.7 million in the same period of 2013, largely as a result of lower realized pricing.

Notwithstanding the significant reduction in gross profit, net income from continuing operations in the second quarter of 2014 was USD 9.5 million higher than the prior year. This increase was largely due to fluctuations in non-cash accounting gains and losses and income tax expense combined with decreased selling and administration expense.

Adjusted EBITDA for the first half of 2014 was USD 23.3 million compared to USD 113.2 million in 2013, due mainly to lower realized pricing. Net loss from continuing operations in the first six months of 2014 was USD 2.2 million, compared to net income of USD 39.3 million for the same period in 2013, representing a decrease of USD 41.5 million. The decrease reflected lower gross profit, partially offset by fluctuations in non-cash accounting gains and losses and income tax expense.

Ainsworth President and CEO, Jim Lake said, "North American OSB market conditions were relatively weak as the spring building season did not materialize as anticipated. North American benchmark OSB prices were stable relative to the prior quarter, although they were nearly 40% or U.S.\\$130/msf lower than the 2Q 2013. Despite the slower pace of housing growth in the near-term, we are optimistic about the longer-term recovery and continued absorption of industry supply. The recent slower market environment in North America does highlight the strategic importance of our traditional export market in Japan as well as the progress we are making in markets such as China for new applications of OSB."

Ainsworth Lumber Co. Ltd. is a leading manufacturer and marketer of oriented strand board with a focus on value-added specialty products for markets in North America and Asia.