Tembec's outlook improves

Tembec has announced that its operational earnings are expected to increase in its third quarter - by at least 42%.

Tembec said its EBITDA (arnings before non-recurring items, interest, income taxes, depreciation, amortization and other non-operating expenses and revenues) are expected to be $47 million to $53 million (up at least $32 million from its second quarter).

Tembec is benefiting from rising pulp prices. But it has also endured a very slow recovery in demand for lumber and weak newsprint prices.

Recently Tembec sold two pulp mills in France for $133 million.

Tembec also plans to sell about $70 million of non-core assets this year - including their turboprop airplane, hydroelectric facilities, an office building, and some land.

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Tembec shares soar on higher outlook - Company has benefited from rising pulp prices and has sold foreign assets (The Star)