Higher Prices, Volumes Boost Ainsworth in 3Q

Engineered-wood-product manufacturer Ainsworth posted its strongest quarter since 1Q 2006, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) at C$37.2 million (US$37.3) for the third quarter from C$700,000 (US$701,897) a year earlier on a 61% jump in sales to C$115.6 (US$115.9) million for the same period. The gains pushed EBITDA margins to 32.3% during the period from 1% a year earlier, with year-to-date margins at 22.1%, thanks to higher product prices and increased shipment volumes alongside improved production capacity at its three mills. However, the company says it will control production levels, waiting to revamp production at its High Level, Alberta, Canada, OSB mill until North American and export demand improves—the move would increase the company’s current production capacity by 50%. View the full results.