The company reported sales of $211.4 million  which is lower than the results in the same period in 2007 when sales were $238.2 million with net income of $48.6 million.

The impact of stronger pricing for pulp and paper and a relatively stable Canadian dollarduring the quarter improved the results when compared to the fourth quarter of 2007 sales of $215.1 million and net income of $12.1 million.

Lower production and sales volumes were a result of the January 15th fire at the Prince George Pulp and Paper Mill. Included in the first quarter earnings are $11.4 million for business interruption insurance and a $8.5 million net gain from property damage coverage. The fire at the Prince George Pulp and Paper Mill destroyed the chip screening and in-feed system.

For the second quarter of 2008, maintenance outages are scheduled at the Northwood and Intercontinental PulpMills, that will result in an estimated 30,000 - 35,000 tonnes of lost production.

The Intercontinental mill will take a mini-maintenance outage and Northwood an extended major-maintenance outage to perform maintenance and to complete capital improvements on its digester and recovery boilers.

The Intercontinental Pulp Mill is scheduled to complete its major maintenance outage in the fourth quarter of 2008, that will result in an estimated 8,000 tonnes of lost production, and is planning to upgrade the capacity of its pulp machine during the outage.