Acadian Timber posts net income of $1.5 million

Acadian Timber Corporation has posted a net income of $1.5 million in its latest quarter. Last year, in the same quarter, the corporation posted a net loss of $200,000.

"Demand for softwood sawlogs was relatively strong during the third quarter and we were able to merchandise effectively to achieve a larger proportion of sales from this higher margin product. In addition, Acadian saw average selling prices increase for all primary products", said Reid Carter, Chief Executive Officer of Acadian. "Acadian was also very successful in its corporate initiatives by arranging a new 5 year loan at a very attractive interest rate with a flexible covenant package to replace its term debt maturing in February 2011."

For the third quarter of 2010, Acadian generated net sales of $17.9 million on sales volume of 345.8 thousand m3, which represents a $3.5 million, or 24% improvement in net sales revenue over the same period in 2009. This increase was driven primarily by higher prices across all primary products, a greater proportion of sales being softwood sawlogs and the greater contribution from the Crown land service agreement.

Acadian Timber Corp. is a leading supplier of primary forest products in Eastern Canada and the Northeastern U.S. With a total of 2.4 million acres of land under management, Acadian is the second largest timberland operator in New Brunswick and Maine.

Acadian owns and manages approximately 1.1 million acres of freehold timberlands in New Brunswick and Maine, and provides management services relating to approximately 1.3 million acres of Crown licensed timberlands. Acadian also owns and operates a forest nursery in Second Falls, New Brunswick. Acadian's products include softwood and hardwood sawlogs, pulpwood and biomass by-products, sold to over 110 regional customers.

Acadian's shares are listed for trading on the Toronto Stock Exchange under the symbol ADN.