Prince George, B.C.- Interfor is reporting a net loss of $8.1 million loss for the 3^rd quarter of 2008,  compared to a loss of $1.6 million in the same period last year.

 

The loss for the quarter includes $2.5 million in accelerated depreciation and impairment charges related to the company’s Adams Lake sawmill which was indefinitely curtailed in early October. The existing Adams Lake sawmill is scheduled to close permanently early next year when the new Adams Lake sawmill, which has been under construction since the third quarter of 2007, is completed. Interfor spent $17.8 million on that new sawmill in the 3^rd quarter. That amount is nearly 2/3 of the capital spending in the quarter ( $28.3 million).

 

In a release issued to the media, Interfor says the financial crisis gripping the global economy has had a material effect on credit availability and construction activity and has resulted in sharply lower prices for most product lines in recent weeks. “In all likelihood, it will take some months for markets to stabilize and a clear direction to emerge. In light of this uncertainty the company’s focus is on cash management, as operations balance production against sales and reduce capital spending. Construction at Adams Lake will continue as planned.”