Once debt-laden Ainsworth Lumber Co. Ltd. (TSX:ANS) reported a profitable first quarter for the period ending March 31, 2010.
The Vancouver-based lumber producer reported a 17% increase in first quarter sales to $81 million, up from $69.2 million in the same period last year.
Ainsworth reported a net profit of $15.7 million compared with a net loss of $34 million.
Strong prices for OSB lumber were the key contributor to the company’s profitability. The average price for OSB was US$214 per thousand square feet (MSF) compared to an average price of US$60 MSF in the first quarter of 2008.
A 10% increase in sales contributed to stronger sales that were impacted by a Canadian dollar that was $0.16 stronger in the first quarter of 2010 than the same period a year ago.
Rick Huff, Ainsworth’s CEO said, “With the changes we made to our business in 2009, we entered 2010 lean, focused and well-positioned to benefit from the rise in OSB prices.”
Ainsworth’s share price range during the past week: between $4.23 and $4.44; 52-week high: $5.89; 52-week low: $0.95.