VANCOUVER - International Forest Products Ltd. (TSX: IFP.A) said Thursday it lost $29.4 million in the second quarter, hit by a $33-million restructuring charge related to the permanent closure of its Queensboro sawmill.
The Vancouver-based forestry company said the loss amounted to 62 cents per share for the quarter ended June 30 compared with a loss of $3.4 million or seven cents per share a year ago.
Sales in the quarter were $117.4 million, down from $195.4 million.
Before restructuring costs, the company said its loss for the quarter amounted to $6.5 million or-- cents per share.
The company also said Thursday that it has signed a deal with Portac Inc. to acquire its operations on the Olympic Peninsula in Washington State for US$28.25 million plus an amount for working capital.
Interfor has an option to pay a portion of deal with up to 2.3 million shares.
The Portac assets include a sawmill and planer mill with production capacity of approximately--5 million board feet per year.
"The Portac mill is an excellent fit with our operations in the area", Interfor president and chief executive Duncan Davies said in statement.
"The mill produces dimension products and small timbers in lengths up to 20 feet which will nicely complement our product mix and presence in the Puget Sound market."
Interfor said it expects annual synergies from the deal in the range of US$1 million to $2 million per year from a combination of reduced administrative expenses and improved operating efficiency.
The deal is expected to close on Sept. 30.
Shares in Interfor, which reported its results after the close of markets, were down five cents at $5.10 on the Toronto Stock Exchange on Thursday.
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