Tembec expects lumber prices will rise to offset cost of U.S. softwood duties

Tembec expects lumber prices will rise to offset cost of U.S. softwood duties

MONTREAL — Tembec Inc. says it expects a portion of the duties being imposed by the Trump administration on imported Canadian softwood will be passed on to its customers.

The Montreal-based forestry company (TSX:TMB) says it’s in good financial position despite being hit by a preliminary 19.88 per cent duty on its softwood shipments to the United States that took effect on Monday.

Tembec says it intends to vigorously defend itself against the U.S. duties, but it anticipates the duties will mean higher lumber prices for customers.

The comments came as Tembec says it earned $24 million or 24 cents per share in the quarter ended March 25 compared with a profit of $27 million or 27 cents per share a year earlier.

Operating earnings before depreciation, amortization and other items totalled $54 million for quarter, up from $36 million a year ago.

Sales in what was the company’s second quarter rose slightly to $387 million, with more than 70 per cent from paper, pulp and specialty cellulose pulp.

The Canadian Press

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