Acadian Timber reports Q2 loss of $8.4M compared with $17.1M loss a year ago

By The Canadian Press

TORONTO - Acadian Timber Income Fund (TSX: ADN-UN.TO) lost $8.4 million in the second quarter compared with a loss of $17.1 million a year ago, the company said Wednesday.

The timberland trust said the loss amounted to 70 cents per unit for the three months ended June 28 compared with a loss of $1.42 per share a year ago.

Revenue in the quarter totalled $8.3 million, down from $13.3 million.

"While the second quarter is historically Acadian's weakest due to seasonality, this year's second-quarter results were also impacted by a number of other factors," Acadian chief executive Reid Carter said in a statement.

"In addition to the ongoing challenges related to weak softwood sawlog demand and the strong Canadian dollar, heavy snowfall and rain in the region led to flooding and a very slow start to summer operations."

The fund said it was also negatively affected by a larger than expected reconciliation payment related to its management of Crown lands.

Acadian owns and manages 445,000 hectares of freehold timberlands in New Brunswick and Maine, and manages another 526,000 hectares of Crown licensed timberlands.

The fund also owns and operates a forest nursery in Second Falls, N.B.