Lesprom Network

     Moscow. Aug 06, 2009. /Lesprom Network/. Burnaby's Taiga Building Products Ltd. reported a 58.6% boost to its first quarter profits despite realizing a 17.5% drop in sales for the period ending June 30, 2009, as reported by Business in Vancouver.

Net income rose to $6.6 million from $4.1 million mainly because of cost reductions made in the quarter and foreign exchange gains. The company made a 43.9% cut in its selling and administration expenses to $8.7 million from $15.5 million in the first quarter a year ago.

Sales, however, fell to $246.9 million from $299.3 million because of dramatic declines in new home construction in Western Canada in the past three months.

During the quarter, Taiga continued to defer its subordinated note interest payments, which, when unpaid, attracted a further 14% interest on interest. The amount of deferred interest payable representing the interest earned in the first quarter was $4 million.