MONTREAL, Sept. 11, 2015 /CNW Telbec/ - Consistent with Tembec's previously announced plans to enhance its liquidity, the Company is evaluating current capital market conditions, and in connection therewith, is having discussions with certain investors. Such discussions have led to questions regarding the Company's performance in the current fiscal quarter. As such, Tembec today is issuing an operating earnings forecast for its fourth quarter ending on September 26, 2015.
The Company expects that adjusted EBITDA for the September 2015 quarter will be in the range of $31 million to $34 million. This compares with adjusted EBITDA of $2 million in the June 2015 quarter. Operating earnings will be in the range of $19 million to $22 million in the September 2015 quarter, as compared to an operating loss of $11 million in the June 2015 quarter. The June 2015 quarterly results had been negatively impacted by significant planned major maintenance activities at the Temiscaming, Quebec and Tartas, France complexes. There will be no significant planned major maintenance in the September 2015 quarter. The decrease in the relative value of the Canadian dollar, which averaged US $0.77 in the months of July and August compared to US $0.813 in the June 2015 quarter, is also contributing to the more favourable operating results.
The previously noted forecast is based on the actual preliminary results for the months of July and August. For the month of September, it is assumed that product selling prices, foreign exchange rates and manufacturing costs will be similar to those of July and August. Tembec does not intend to continue to provide a forecast of operating earnings for future periods. The Company will release its fiscal fourth quarter results for the period ending September 26, 2015 on Thursday, November 19, 2015.