Tembec reports financial results for its fourth quarter and year ended September 29, 2007



    MONTREAL, Nov. 21 /CNW Telbec/ - Consolidated sales for the fourth
quarter ended September 29, 2007 were $675 million, down from $781 million in
the comparable period last year. The Company generated net earnings of
$22 million or $0.25 per share compared to a net loss of $52 million or $0.62
per share in the corresponding quarter ended September 30, 2006, and a net
loss of $164 million or $1.91 per share in the previous quarter. Earnings
before unusual items, interest, income taxes, depreciation, amortization and
other non-operating expenses (EBITDA) was $23 million, as compared to EBITDA
of $26 million a year ago and up from EBITDA of $4 million in the prior
quarter.
    The September 2007 quarterly financial results include an after-tax gain
of $71 million or $0.83 per share relating to the gain on translation of
foreign debt. After adjusting for this item and certain other items, the
Company would have generated a net loss of $51 million or $0.60 per share.
This compares to a net loss of $43 million or $0.51 per share in the
corresponding quarter ended September 30, 2006 and a net loss of $76 million
or $0.88 per share in the previous quarter. The impact of specific items on
the Company's financial performance is discussed further in the Management
Discussion and Analysis (MD&A) of its financial results.
    For the fiscal year ended September 29, 2007, sales were $2.8 billion as
compared to $3.0 billion in the prior year. The Company generated a net loss
of $49 million or $0.58 per share compared to a net loss of $292 million or
$3.41 per share in fiscal 2006. EBITDA increased to $65 million from
$42 million a year ago.
    The fiscal 2007 annual financial results include an after-tax gain of
$124 million or $1.45 per share on the translation of its US $ denominated
debt and an after-tax gain of $185 million or $2.16 per share related to the
refund of lumber duties and interest thereon. After adjusting for these items
and certain other items, the Company would have generated a net loss of
$152 million or $1.79 per share. This compares to a net loss of $252 million
or $2.94 per share in the prior year.

    Business Segment Results
    ------------------------

    The Forest Products segment generated negative EBITDA of $13 million on
sales of $203 million. This compares to negative EBITDA of $21 million on
sales of $212 million in the prior quarter. The sales decrease of $9 million
was caused primarily by lower shipments of SPF lumber. US $ reference prices
for random lumber increased by approximately US $5 per mbf while stud lumber
decreased by US $1 per mbf. Currency negatively impacted sales as the
Canadian $ averaged US $ 0.957, a 5% increase from US $ 0.913 in the prior
quarter. The currency impact was offset by higher average net sales values.
Given the relatively soft lumber market conditions, the Company has made a
decision to reduce the quantity of lower grade lumber produced in its
sawmills. The net price effect was an increase in EBITDA of $1 million or
$3 per mbf. Margins were positively impacted by lower operating costs. During
the quarter, the Company incurred $5 million of lumber export taxes, unchanged
from the prior quarter. Lumber export taxes are payable based on the 2006
agreement between Canada and the United States. Applicable export tax rates
vary based upon selling prices. During the September quarter, the Company
incurred a tax of 5% on Eastern shipments and 15% on Western shipments,
unchanged from the prior quarter.
    The Pulp segment generated EBITDA of $51 million on sales of $369 million
for the quarter ended September 2007 compared to EBITDA of $33 million on
sales of $380 million in the June 2007 quarter. Lower effective Canadian $
selling prices combined with lower shipments generated the $11 million decline
in sales. Reflecting the strength of the pulp market, inventories were at
19 days of supply at the end of September, down from 20 days at the end of the
prior quarter. US $ reference prices increased for all grades of pulp. The
increases in US $ reference prices were not enough to offset the negative
impact of the stronger Canadian $. The net price effect was a decrease of
$8 per tonne, decreasing EBITDA by $4 million. Margins were assisted by lower
manufacturing costs. The summer months have lower energy costs and lower
maintenance downtime. In the prior quarter, the Company had taken 13,700
tonnes of maintenance downtime compared to only 1,300 tonnes in the September
2007 quarter. While the local currency costs of the French pulp mills declined
in Euros, the stronger Canadian $ resulted in a further reduction of
$4 million in reported Canadian $ manufacturing costs.
    The Paper segment generated negative EBITDA of $10 million on sales of
$116 million. This compares to negative EBITDA of $1 million on sales of
$128 million in the prior quarter. The sales decrease of $12 million was due
to lower effective prices. The US $ reference price for newsprint declined by
US $25 per tonne while the reference price for coated bleached board increased
by US $20 per short ton. The stronger Canadian $ also negatively impacted
selling price. The net price effect was a decrease of $54 per tonne,
decreasing EBITDA by $9 million. Manufacturing costs remained relatively
unchanged from those of the prior quarter. The Company incurred 3,500 tonnes
of market related downtime in the September 2007 quarter, up from 900 tonnes
of maintenance downtime in the June 2007 quarter. In June 2007, the Company
announced that the paper mill located in St. Francisville, Louisiana, would be
indefinitely idled as of the end of July. The Company has not identified a
feasible restructuring plan to resume operations at the facility. The assets,
liabilities and financial results of the St. Francisville operation have been
reclassified as discontinued operations.

    Other
    -----

    Liquidity at the end of September 2007 was $217 million, consisting of
$14 million of cash and $203 million of unused operating lines of credit. The
Company continues with initiatives to improve liquidity. The target for 2007
was to generate $100 million of additional liquidity through a combination of
asset sales and increased working capital facilities. To date, a total of
$103 million has been generated through these initiatives.
    The Company is exploring strategic alternatives to improve its capital
structure and enhance liquidity. Strategic alternatives under consideration
include non-core asset sales, cost reduction initiatives, refinancing or
repayment of debt and issuance of new debt or equity. The review of strategic
alternatives is being undertaken by Tembec's management and is being overseen
by the Special Committee for Strategic Purposes and the Board of Directors.
BMO Capital Markets is providing financial advice to Tembec. The Company
remains focused on improving its operations in the context of a relatively
difficult environment for forest products, while retaining a collaborative
relationship with its customers, suppliers, and employees.

    Outlook
    -------

    Overall, the September quarterly operating results were in line with the
Company's expectations. The rapid appreciation of the Canadian $ and the Euro
versus the US $ negatively impacted all of the Company's business segments.
Lumber and newsprint prices, when converted to Canadian $, are at trough
levels. Looking ahead, pulp markets are expected to remain strong and price
increases have already been announced for the December quarter. Newsprint and
lumber will continue to be challenging as producers will need to adapt to
relatively weak demand fundamentals. As for the Company, it will continue to
focus on controllable items such as costs and operating efficiency, the key
elements of its recovery plan. Management will also be expending considerable
efforts to work with its financial advisors to develop and review potential
strategic alternatives to address its current leveraged capital structure.

    Tembec is a large, diversified and integrated forest products company.
With operations principally located in North America and in France, the
Company employs approximately 9,000 people. Tembec's common shares are listed
on the Toronto Stock Exchange under the symbol TBC. Additional information on
Tembec is available on its website at www.tembec.com

    This press release includes "forward-looking statements" within the
meaning of securities laws. Such statements relate to the Company's or
management's objectives, projections, estimates, expectations or predictions
of the future and can be identified by words such as "anticipate", "estimate",
"expect", " will" and "project" or variations of such words. These statements
are based on certain assumptions and analyses made by the Company in light of
its experience and its perception of future developments. Such statements are
subject to a number of risks and uncertainties, including, but not limited to,
changes in foreign exchange rates, product selling prices, raw material and
operating costs and other factors identified in our periodic filings with
securities regulatory authorities in Canada and the United States. Many of
these risks are beyond the control of the Company and, therefore, may cause
actual actions or results to materially differ from those expressed or implied
herein. The Company disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new information, future
events or otherwise.

    
    -------------------------------------------------------------------------
                                 TEMBEC INC.
                         CONSOLIDATED BALANCE SHEETS
    -------------------------------------------------------------------------

    (unaudited) (in millions of dollars)

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                        Sept. 29,   Sept. 30,
                                                            2007        2006
                                                                    (Audited)
    -------------------------------------------------------------------------
    Assets
    Current Assets:
      Cash and cash equivalents                          $    14     $    31
      Accounts receivable                                    347         360
      Inventories                                            436         454
      Prepaid expenses                                        15          17
      Current assets from discontinued operations
       (note 3)                                               18          74
    -------------------------------------------------------------------------
                                                             830         936

    Investments                                               28          32
    Fixed assets                                           1,584       1,680
    Other assets                                             146         166
    Future income taxes                                       67          63
    Non-current assets from discontinued operations
     (note 3)                                                  -         157
    -------------------------------------------------------------------------
                                                         $ 2,655     $ 3,034
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities and Shareholders' Equity
    Current Liabilities:
      Bank indebtedness                                  $     -     $     5
      Operating bank loans                                    89         235
      Accounts payable and accrued charges                   363         382
      Interest payable                                        17          19
      Current portion of long-term debt (note 4)              26          21
      Current liabilities related to discontinued
       operations (note 3)                                     6          22
    -------------------------------------------------------------------------
                                                             501         684

    Long-term debt (note 4)                                1,314       1,433
    Other long-term liabilities and credits                  125         117
    Future income taxes                                       93         121
    Minority interest                                          5           5
    Redeemable preferred shares                               26          26
    Non-current liabilities related to discontinued
     operations (note 3)                                      25          33
    Shareholders' equity:
      Share capital (note 5)                                 840         840
      Accumulated other comprehensive loss                    (3)         (3)
      Deficit                                               (271)       (222)
    -------------------------------------------------------------------------
                                                             566         615
    -------------------------------------------------------------------------
                                                         $ 2,655     $ 3,034
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
                                 TEMBEC INC.
                    CONSOLIDATED STATEMENTS OF OPERATIONS
    -------------------------------------------------------------------------

    Quarters and years ended September 29, 2007 and September 30, 2006
    (unaudited) (in millions of dollars, unless otherwise noted)

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

                                        Quarters                 Years
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------
    Sales                        $   675     $   781     $ 2,750     $ 3,016
    Freight and sales
     deductions                       78          96         316         362
    Lumber duties and
     export taxes (note 6)             5           8          18          35
    Cost of sales                    537         617       2,218       2,434
    Selling, general and
     administrative                   32          34         133         143
    Depreciation and
     amortization                     44          42         173         185
    Recovery of lumber
     duties (note 7)                   -           -        (238)          -
    Restructuring and asset
     impairment charges (note 7)       -          19          30         188
    Gain on land sales
     and other (note 7)               (3)         (2)        (19)         (6)
    -------------------------------------------------------------------------
    Operating earnings (loss)
     from continuing operations      (18)        (33)        119        (325)
    Interest, foreign exchange
     and other (note 8)               43          37         118         106
    Exchange gain on long-term
     debt                            (86)         (7)       (149)        (64)
    -------------------------------------------------------------------------
    Earnings (loss) from
     continuing operations,
     before income taxes
     and share in earnings
     of a related company             25         (63)        150        (367)

    Income tax expense
     (recovery) (note 9)               3         (11)          1         (72)
    Share in earnings of
     a related company                 -          (1)         (1)          -
    -------------------------------------------------------------------------
    Net earnings (loss)
     from continuing operations       22         (51)        150        (295)
    Earnings (loss)
     from discontinued
     operations (note 3)               -          (1)       (199)          3
    -------------------------------------------------------------------------
    Net earnings (loss)          $    22     $   (52)    $   (49)    $  (292)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Basic and diluted
     earnings (loss)per
     share from continuing
     operations (note 5)         $  0.25     $ (0.61)    $  1.75     $ (3.45)
    Basic and diluted
     earnings (loss) per
     share from discontinued
     operations (note 5)         $     -     $ (0.01)    $ (2.33)    $  0.04
    Basic and diluted
     earnings (loss) per
     share (note 5)              $  0.25     $ (0.62)    $ (0.58)    $ (3.41)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
                                 TEMBEC INC.
           CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
    -------------------------------------------------------------------------

    Quarters and years ended September 29, 2007 and September 30, 2006
    (unaudited) (in millions of dollars, unless otherwise noted)

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                        Quarters                 Years
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------
    Net earnings (loss)          $    22     $   (52)    $   (49)    $  (292)
    Other comprehensive
     income (loss):
    Exchange translation
     of foreign subsidiaries           -           -           -           -
    -------------------------------------------------------------------------
    Comprehensive income (loss)  $    22     $   (52)    $   (49)    $  (292)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
                                 TEMBEC INC.
           CONSOLIDATED STATEMENTS OF RETAINED EARNINGS (DEFICIT)
    -------------------------------------------------------------------------

    Quarters and years ended September 29, 2007 and September 30, 2006
    (unaudited) (in millions of dollars, unless otherwise noted)

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                        Quarters                 Years
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------
    Retained earnings
     (deficit), beginning
     of period                   $  (320)    $  (194)    $  (249)    $    55
    Adjustment resulting
     from a change in
     accounting policy
     (note 2)                         27          24          27          15
    -------------------------------------------------------------------------
    Retained earnings
     (deficit), beginning
     of period                   $  (293)    $  (170)    $  (222)    $    70
    Net earnings (loss)               22         (52)        (49)       (292)
    -------------------------------------------------------------------------
    Deficit, end of period       $  (271)    $  (222)    $  (271)    $  (222)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
                                 TEMBEC INC.
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
    -------------------------------------------------------------------------

    Quarters and years ended September 29, 2007 and September 30, 2006
    (unaudited) (in millions of dollars)

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

                                        Quarters                 Years
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------
    Cash flows from
     operating activities:
      Net earnings (loss)        $    22     $   (52)    $   (49)    $  (292)
      Adjustments for:
        Loss (earnings)
         from discontinued
         operations (note 3)           -           1         199          (3)
        Depreciation and
         amortization                 44          42         173         185
        Unrealized foreign
         exchange and others
          (note 8)                    (5)          3          (2)        (32)
        Exchange gain on
         long-term debt              (86)         (7)       (149)        (64)
        Proceeds from sale
         of derivative
         financial instruments         1           2           1           6
        Future income taxes
        (note 9)                      10         (12)        (26)        (71)
        Utilization of
         investment tax credits        -           -          27           -
        Restructuring and asset
         impairment charges
         (note 7)                      1          20          21         185
        Gain on land sales
         and other (note 7)           (3)         (2)        (16)         (6)
        Difference between
         cash contributions
         and pension expense          (4)          4         (13)         13
        Other                          -           1          (3)          2
    -------------------------------------------------------------------------
                                     (20)          -         163         (77)
    Changes in non-cash
     working capital:
      Temporary investments            -           -           -          16
      Accounts receivable             42          23          30          22
      Inventories                     42          30          33          82
      Prepaid expenses                 7           6           3           5
      Accounts payable and
       accrued charges               (39)        (16)        (40)        (59)
    -------------------------------------------------------------------------
                                      52          43          26          66
    -------------------------------------------------------------------------
                                      32          43         189         (11)
    -------------------------------------------------------------------------
    Cash flows from investing
     activities:
      Additions to fixed assets
       - net of disposals            (21)        (20)        (71)        (82)
      Proceeds on land sales
       and other                       3           2          15          12
      Acquisition of investments,
       net of disposals                -           -           3          (7)
      Other                            -         (11)         (3)        (13)
    -------------------------------------------------------------------------
                                     (18)        (29)        (56)        (90)
    Cash flows from financing
     activities:
      Change in operating
       bank loans                    (23)        (28)       (146)         47
      Increase in long-term
       debt                            2           6          45          19
      Repayment of long-term
       debt                           (1)         (1)        (14)         (9)
      Increase (decrease) in
       other long-term
       liabilities                     1           -           2          (2)
      Other                           (5)          1          (5)          9
    -------------------------------------------------------------------------
                                     (26)        (22)       (118)         64
    Cash generated (used) by
     continuing operations           (12)         (8)         15         (37)
    Cash generated (used) by
     discontinued operations
     (note 3)                         (5)          3         (26)         63
    -------------------------------------------------------------------------
    Foreign exchange gain on
     cash and cash equivalents
     held in foreign currencies        -           -          (1)          -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net increase (decrease) in
      cash and cash equivalents      (17)         (5)        (12)         26

    Cash and cash equivalents,
     net of bank indebtedness,
     beginning of period              31          31          26           -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cash and cash equivalents,
     net of bank indebtedness,
     end of period               $    14     $    26     $    14     $    26
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Supplemental
     information:
      Interest paid              $    40     $    61     $   127     $   134
      Income taxes paid
       (recovered)                    (2)          -     $     1     $     2
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
                                 TEMBEC INC.
                  CONSOLIDATED BUSINESS SEGMENT INFORMATION
    -------------------------------------------------------------------------

    Quarters ended September 29, 2007 and September 30, 2006
    (unaudited) (in millions of dollars)

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                          September 29, 2007
    -------------------------------------------------------------------------

                                                             Corpo-
                         Forest                      Chemi-  rate &    Conso-
                       products     Pulp    Paper     cals    other  lidated
    -------------------------------------------------------------------------
    Sales:
      External          $   165  $   353  $   116  $    41  $     -  $   675
      Internal               38       16        -        -        1       55
    -------------------------------------------------------------------------
                            203      369      116       41        1      730

    Earnings (loss)
     before the
     following              (13)      51      (10)       3       (8)      23
    Depreciation and
     amortization            15       19        8        1        1       44
    Unusual items            (3)       -        -        -        -       (3)
    Operating earnings
     (loss) from
     continuing
     operations             (25)      32      (18)       2       (9)     (18)
    -------------------------------------------------------------------------

    Net fixed asset
     additions                9       11        1        -        -       21
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                          September 30, 2006
    -------------------------------------------------------------------------

                                                              Corpo-
                         Forest                      Chemi-  rate &    Conso-
                       products     Pulp    Paper     cals    other  lidated
    -------------------------------------------------------------------------
    Sales:
      External          $   211  $   368  $   153  $    49  $     -  $   781
      Internal               43       26        -        1        -       70
    -------------------------------------------------------------------------
                            254      394      153       50        -      851

    Earnings (loss)
     before the
     following                1       26        7        2      (10)      26

    Depreciation
     and amortization        14       16       10        1        1       42

    Unusual items             3       14        -        -        -       17

    Operating
     earnings (loss)
    from continuing
     operations             (16)      (4)      (3)       1      (11)     (33)
    -------------------------------------------------------------------------
    Net fixed
     asset additions         10        9        2       (1)       -       20
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
                                 TEMBEC INC.
                  CONSOLIDATED BUSINESS SEGMENT INFORMATION
    -------------------------------------------------------------------------
    Years ended September 29, 2007 and September 30, 2006
    (unaudited) (in millions of dollars)

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                          September 29, 2007
    -------------------------------------------------------------------------

                                                              Corpo-
                         Forest                      Chemi-  rate &    Conso-
                       products     Pulp    Paper     cals    other  lidated
    -------------------------------------------------------------------------
    Sales:
      External          $   687  $ 1,384  $   509  $   170  $     -  $ 2,750
      Internal              145       74        -        3        2      224
    -------------------------------------------------------------------------
                            832    1,458      509      173        2    2,974

    Earnings (loss)
     before the
     following              (68)     149        5       10      (31)      65
    Depreciation
     and amortization        56       74       35        4        4      173
    Unusual items          (253)      29       (3)       -        -     (227)
    Operating earnings
     (loss) from
     continuing
     operations             129       46      (27)       6      (35)     119
    -------------------------------------------------------------------------
    Net fixed asset
     additions               20       46        4        1        -       71
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                          September 30, 2006
    -------------------------------------------------------------------------

                                                              Corpo-
                         Forest                      Chemi-  rate &    Conso-
                       products     Pulp    Paper     cals    other  lidated
    -------------------------------------------------------------------------
    Sales:
      External          $   905  $ 1,360  $   558  $   193  $     -  $ 3,016
      Internal              183       91        -        2        4      280
    -------------------------------------------------------------------------
                          1,088    1,451      558      195        4    3,296

    Earnings (loss)
     before the
     following               37       25       21        8      (49)      42

    Depreciation
     and amortization        54       87       36        4        4      185

    Unusual items            (1)     183        -        -        -      182

    Operating earnings
     (loss)from
     continuing
     operations             (16)    (245)     (15)       4      (53)    (325)
    -------------------------------------------------------------------------
    Net fixed
     asset additions         34       45        3        -        -       82
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
                                 TEMBEC INC.
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    -------------------------------------------------------------------------

    (in millions of dollars, unless otherwise noted)

    -------------------------------------------------------------------------

    1. Financial Position of the Company and Going Concern

    These consolidated financial statements are presented on the assumption
that the Company continues as a going concern in accordance with Canadian
generally accepted accounting principles (GAAP). The going concern basis of
presentation assumes that the Company will continue its operations for the
foreseeable future and will be able to realize its assets and discharge its
liabilities and commitments in the normal course of business. There is
reasonable doubt about the appropriateness of using the going concern
assumption because of the Company's current liquidity position coupled with
its expected operating cash flows. The Company must provide for annual
interest payments of $110-$120 million to service existing indebtedness and is
required to fund annual minimum capital expenditures of $60-$70 million.
    The significant appreciation of the Canadian $ against the US $ over the
past several years and the higher energy costs have led to reduced operating
margins for the Company, and for the Canadian forest products industry in
general. As well, the Company's financial performance continues to be
negatively impacted by tariffs on lumber shipped to the US. This erosion of
competitive position has led to the closure of several operations. The Company
is exploring strategic alternatives to improve its capital structure and
enhance liquidity. Strategic alternatives under consideration include non-core
asset sales, cost reduction initiatives, refinancing or repayment of debt and
issuance of new debt or equity. The review of strategic alternatives is being
undertaken by Tembec's management and is being overseen by the Special
Committee for Strategic Purposes and the Board of Directors. External
financial advisors have been retained to assist in the process.
    These financial statements assume the realization of assets and the
settlement of liabilities in the normal course of business. If the going
concern basis were not appropriate for these financial statements, adjustments
would have to be made to the carrying value of assets and liabilities,
reported revenues and expenses and balance sheet classifications.

    2. Significant accounting policies

    Basis of presentation

    These unaudited consolidated financial statements have been prepared in
accordance with Canadian GAAP using the same accounting policies and methods
as the most recent audited consolidated financial statements. These interim
consolidated financial statements should be read in conjunction with the
annual audited consolidated financial statements for the year ended
September 30, 2006.

    Changes in accounting policies

    The Company changed retroactively its accounting policy relating to the
evaluation of misstatements in its financial statements in accordance with
Section 1506, Accounting Changes of the Canadian Institute of Chartered
Accountants (CICA) Handbook. The Company applied a methodology consistent with
that of the Securities and Exchange Commission (SEC) Staff Accounting Bulletin
No. 108 ("SAB 108"), Considering the Effect of Prior Year Misstatements when
Quantifying Misstatements in Current Year Financial Statements. The Company
will now quantify the effect of prior-year misstatement on the current-year
financial statements, assessing their impact on both the financial position
and results of operations of the Company and evaluating the materiality of
misstatements quantified on the above in light of quantitative and qualitative
factors. Accordingly, the Company adjusted its consolidated balance sheet as
at September 24, 2005, and increased its closing retained earnings in 2005 and
2006 in the consolidated statements of retained earnings (deficit) by
$15 million and $27 million respectively. There was no impact on the
consolidated statements of operations and cash flows nor on the earnings
(loss) per share for the year ended September 29, 2007. The adjustments
related to misstatements which arose mainly in 2006 and in prior years. As at
September 24, 2005, the cumulative effect of this accounting change relating
to the fiscal years 2001 to 2005, was a decrease in accumulated depreciation
of $22 million, an increase in the future income tax liability of $7 million
and an increase in retained earnings of $15 million. For fiscal 2006, the
depreciation expense declined by $5 million, the income tax recovery increased
by $7 million and the net loss decreased by $12 million.
    Effective October 1, 2006, the Company adopted the new recommendations of
the CICA Handbook Section 1530, Comprehensive Income, Section 3251, Equity,
Section 3855, Financial Instruments - Recognition and Measurement, Section
3861 Financial Instruments - Disclosure and Presentation and Section 3865,
Hedges. These new Handbook Sections, which apply to fiscal years beginning on
or after October 1, 2006, provide requirements for the recognition and
measurement of financial instruments and on the use of hedge accounting.
Section 1530 establishes standards for reporting and presenting comprehensive
income, which is defined as the change in equity from transactions and other
events from non-owner sources. Other comprehensive income refers to items
recognized in comprehensive income but that are excluded from net income
calculated in accordance with generally accepted accounting principles.
    Under Section 3855, all financial instruments are classified into one of
these five categories: held-for-trading, held-to-maturity investments, loans
and receivables, available-for-sale financial assets or other financial
liabilities. All financial instruments and derivatives are measured in the
balance sheet at fair value except for loans and receivables, held-to-maturity
investments and other financial liabilities which are measured at amortized
cost. Subsequent measurement and changes in fair value will depend on their
initial classification, as follows: held-for-trading financial assets are
measured at fair value and changes in fair value are recognized in net income.
Available-for-sale financial instruments are measured at fair value with
changes in fair value recorded in other comprehensive income until the
instrument is derecognized or impaired. All derivative instruments, including
embedded derivatives, are recorded in the balance sheet at fair value unless
they qualify for the normal sale normal purchase exemption. All changes in
their fair value are recorded in income unless cash flow hedge accounting is
used, in which case changes in fair value are recorded in other comprehensive
income.
    As a result of the adoption of these new standards, the Company has
classified its cash and cash equivalents as held-for-trading. Accounts
receivable are classified as loans and receivables. The Company's investments
consist mainly of equity investments which are excluded from the
recommendations of this standard and of loans receivable which are classified
as loans and receivables. Bank indebtedness, operating bank loans, accounts
payable and accrued charges, long-term debt, including interest payable, and
redeemable preferred shares are classified as other liabilities, all of which
are measured at amortized cost. The Company has elected to measure all
derivatives and embedded derivatives at fair value and the Company has
maintained its policy not to use hedge accounting.
    Section 3855 also provides guidance on accounting for transaction costs
incurred upon the issuance of debt instruments or modification of a financial
liability. Transaction costs are now deducted from the financial liability and
are amortized using the effective interest method over the expected life of
the related liability. As a result of the application of Section 3855,
unamortized financing costs of $3 million ($7 million - September 2006),
previously recorded in other assets, have been reclassified against long-term
debt. Previously recorded cumulative translation adjustment on self-sustaining
operations is now presented in Accumulated other comprehensive income. The
adoption of these new standards had no impact on the Company's deficit
position as at October 1, 2006.
    Carrying value and fair value of financial assets and liabilities are
summarized as follows:

    -------------------------------------------------------------------------
    Classification                                Carrying value  Fair value
    -------------------------------------------------------------------------
    Held-for-trading                                     $    14     $    14
    Loans and receivables                                    380         380
    Held-to-maturity                                           -           -
    Available-for-sale                                         -           -
    Other liabilities                                      1,838       1,120
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Effective October 1, 2006, the Company applied the accounting treatment
prescribed by emerging issues committee ("EIC") EIC-162 of the CICA Handbook
with respect to stock-based compensation for employees eligible to retire
before the vesting date. EIC-162 provides guidance to determine compensation
costs attributable to a stock-based award under a compensation plan that
contains a provision that allows an employee to continue vesting after the
employee has retired. The application of EIC-162 had no impact on the
financial statements of the Company.

    Business of the Company

    The Company operates an integrated forest products business. The
performance of each segment is evaluated by the management of the Company
against short-term and long-term financial objectives as well as
environmental, safety and other key criteria. The Forest Products segment
consists primarily of forest and sawmill operations, which produce lumber and
building materials. The Pulp segment includes the manufacturing and marketing
activities of a number of different types of pulps. The Paper segment consists
primarily of production and sales of newsprint and bleached board. The
Chemicals segment consists primarily of the transformation and sale of resins
and pulp by-products. Intersegment transfers of wood chips, pulp and other
services are recorded at transfer prices agreed to by the parties, which are
intended to approximate fair market value. The accounting policies used in
these business segments are the same as those described in the annual audited
consolidated financial statements.
    Prior to the June 2007 quarter, the Company allocated corporate general
and administrative expenses to each business segment based on the dollar value
of their total sales. The Company has discontinued this practice and has added
a "Corporate and Other" category to the segment information tables included in
its financial statements. Prior period segment information in the financial
statements has also been restated to conform with this change in presentation.
It is the Company's view that providing separate disclosure of corporate
general and administrative expenses will be useful to financial statement
users and will allow more accurate segment performance comparison with other
forest products companies.

    3. Discontinued operations

    In July 2007, the Company indefinitely idled its coated paper facility in
St. Francisville, Louisiana. Despite efforts to restructure the operation, the
mill's financial performance remained relatively poor. As a result of the
change in circumstances, the Company recorded an asset impairment charge of
$173 million in the June 2007 quarter. The Company has not identified a
feasible restructuring plan to resume operations at the facility. As well, the
Company has retained the services of an outside party to actively seek the
sale of the site. As this operation is the only coated paper facility owned by
the Company, its financial results have been reclassified as discontinued
operations. Comparative figures have also been reclassified to exclude the
coated paper results from the Company's continuing operations.
    Condensed earnings from discontinued operations related to the
St. Francisville facility are as follows:

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                        Quarters                 Years
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------
    Sales                        $    27     $    82     $   249     $   316
    Operating loss                    (5)          -        (206)        (43)
    Financing Expenses                (5)          1          (7)          5
    Loss from discontinued
     operations                        -          (1)       (199)        (48)
    -------------------------------------------------------------------------
    Loss per common share from
     discontinued operations     $     -     $ (0.01)    $ (2.33)    $ (0.56)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Condensed cash flows from discontinued operations are as follows:

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                  Quarters Years
    -------------------------------------------------------------------------
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------
    Cash flows from
     operating activities        $    (5)    $     3     $   (22)    $   (24)
    Cash flows from
     investing activities              -           -          (4)         (4)
    -------------------------------------------------------------------------
    Cash flows generated
     (used) by discontinued
     operations                  $    (5)    $     3     $   (26)    $   (28)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    On February 27, 2006, the Company completed the sale of its oriented
strandboard (OSB) business located in Saint-Georges-de-Champlain, Quebec to a
related party. The comparative financial results of the OSB operation have
been reclassified as discontinued operations.
    Condensed earnings from discontinued operations related to the OSB are as
follows for the quarter and year ended September 30, 2006:

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                         Quarter        Year
    -------------------------------------------------------------------------
    Sales                                                $     -     $    38
    Operating profit                                           -           7
    Income taxes                                               -          19
    Earnings from discontinued operations                      -          51
    -------------------------------------------------------------------------
    Earnings per common share from
     discontinued operations                             $     -     $  0.60
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Condensed cash flows from discontinued operations are as follows for the
quarter and year ended September 30, 2006:

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                         Quarter        Year
    -------------------------------------------------------------------------
    Cash flows from operating activities                 $     -     $    10
    Cash flows from investing activities                       -          81
    -------------------------------------------------------------------------
    Cash flows generated by discontinued
     operations                                          $     -     $    91
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    4. Long-term debt

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                        Sept. 29,   Sept. 30,
                                           Maturity         2007        2006
    -------------------------------------------------------------------------
    Tembec Inc. - 6% unsecured notes        09/2009      $    20     $    24
    Tembec Industries - US$350 million
     8.625% unsecured senior notes          06/2009          348         391
    Tembec Industries - US$500 million
     8.5% unsecured senior notes            02/2011          498         559
    Tembec Industries - US$350 million
     7.75% unsecured senior notes           03/2012          348         391
    Tembec SAS                              12/2013           20          10
    Tembec Envirofinance SAS                06/2017           32          21
    Tembec Energie SAS                      12/2014           10           -
    Proportionate share - Marathon (50%)    03/2006            7          10
    Proportionate share - Temlam (50%)      06/2015           39          40
    Other                                   Various           21          15
    -------------------------------------------------------------------------
                                                           1,343       1,461
    Less current portion                                      26          21
    Less unamortized financing costs                           3           7
    -------------------------------------------------------------------------
                                                         $ 1,314     $ 1,433
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    5. Share capital

    The following table provides the reconciliation between basic and diluted
loss per share:

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                        Quarters                 Years
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------
    Net earnings (loss) from
     continuing operations       $    22     $   (51)    $   150     $  (295)
    Net earnings (loss)          $    22     $   (52)    $   (49)    $  (292)
    Weighted average
     number of common
     shares outstanding       85,616,232  85,616,232  85,616,232  85,616,232
    Dilutive effects:
      Employees stock
       options                   218,193      88,375     197,011      67,092
      Weighted average
       number of diluted
       common shares
       outstanding            85,834,425  85,704,607  85,813,243  85,683,324
    Basic and diluted
     earnings (loss)
     per share from
     continuing operations       $  0.25     $ (0.61)    $  1.75     $ (3.45)
    Basic and diluted
     earnings (loss) per share   $  0.25     $ (0.62)    $ (0.58)    $ (3.41)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    The diluted loss per share is the same as the basic loss per share as the
dilutive factors result in a decrease in the loss per share. In the case of
diluted earnings per share, the diluting factors are not significant enough to
effect a decrease in the earnings per share.
    Under the Long-Term Incentive Plan, the Company may, from time to time,
grant options to its employees. The plan provides for the issuance of common
shares at an exercise price equal to the market price of the Company's common
shares on the date of the grant. These options vest over a five-year period
and expire ten years from the date of issue. For the twelve-month period
ending September 29, 2007, the Company had not granted any options (December
2005 - 634,741 stock options at $2.15; March 2006 - 439,800 stock options at
$0.97). The compensation expense recorded was not significant.
    The fair value of options granted was estimated on the date of grant using
the Black & Scholes option-pricing model with the following assumptions:

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                Saturday, September 30, 2006
    -------------------------------------------------------------------------
    Dividend Yield                                                       0.0%
    Volatility                                                          37.6%
    Risk-free interest rate                                              3.9%
    Expected option lives (in years)                                     7.5
    -------------------------------------------------------------------------
    Weighted average fair value of options granted                   $  0.64
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    The following table summarizes the changes in options outstanding and the
impact on weighted average per share exercise price during the period.

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                2007                    2006
    -------------------------------------------------------------------------
                                            Weighted                Weighted
                                             average                 average
                                            exercise                exercise
                                  Shares       price      Shares       price
    -------------------------------------------------------------------------
    Balance, beginning
     of fiscal year            4,829,239     $  7.35   4,129,253     $  9.00
    Options granted                    -           -     634,741        2.15
    Options expired             (102,202)       5.62     (43,900)      11.94
    -------------------------------------------------------------------------
    Balance, end of December   4,727,037        7.38   4,720,094        8.05
    -------------------------------------------------------------------------
    Options granted                    -           -     439,800        0.97
    Options expired              (62,269)      10.94    (140,686)      10.49
    -------------------------------------------------------------------------
    Balance, end of March      4,664,768        7.34   5,019,208        7.36
    -------------------------------------------------------------------------
    Options granted                    -           -           -           -
    Options expired             (317,623)       6.54    (105,480)       9.28
    -------------------------------------------------------------------------
    Balance, end of June       4,347,145     $  7.40   4,913,728     $  7.32
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Options granted                    -           -           -           -
    Options expired             (679,126)      13.44     (84,489)       5.94
    -------------------------------------------------------------------------
    Balance, end of September  3,668,019     $  6.28   4,829,239     $  7.35
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    6. Lumber duties and export taxes

    Effective October 12, 2006, the Governments of Canada and the United
States implemented an agreement for the settlement of the softwood lumber
dispute. The Softwood Lumber Agreement ("SLA") requires that an export tax be
collected by the Government of Canada, which is based on the price and volume
of lumber shipped. The SLA had an effective date of October 12, 2006, at which
time the U.S. Department of Commerce ("USDOC") revoked all existing
countervailing and antidumping duty orders on softwood lumber shipped to the
U.S. from Canada.

    7. Other items

    2007

    Restructuring and asset impairment charges:

    During the June 2007 quarter, the Company recorded a loss of $1 million
related to other assets valuation with respect to its interest in a pine
lumber business in Chile.
    During the December 2006 quarter, the Company announced the permanent
closure of the Smooth Rock Falls, Ontario, pulp mill. The facility had been
idled since the end of July 2006. The Company recorded a charge of $29 million
relating to special termination pension benefits, severance and other relating
items.

    Recovery of lumber duties:

    During the December 2006 quarter, the Company recorded net proceeds of
$238 million pertaining to the recovery of lumber duties on deposit with the
USDOC that had accumulated since May 2002. The amount received by the Company
corresponds to approximately 82% of the total amount deposited. In addition,
the Company received a further $30 million, which corresponds to approximately
82% of the interest accrued on the deposits since May 2002. This latter amount
was recorded as interest income.

    Gain on land sales and other:

    The Company completed the sale of a number of land and other properties
and recorded a net gain of $1 million in the September 2007 quarter,
$1 million in the June 2007 quarter, $4 million in the March 2007 quarter, and
$8 million in the December 2006 quarter.
    During the September 2007 quarter, the Company recorded a net gain of
$2 million on the sale of the Davidson, Quebec, sawmill, which had been closed
in the June 2005 quarter.
    During the June 2007 quarter, the Company recorded a net gain of
$1 million on the sale of the Saint-Raymond paper mill, which had been closed
during the June 2005 quarter. As a result of the sale, the balance of
$2 million of mill closure provisions was also reversed.
    During the December 2006 quarter, the Company completed the sale of its
small pine lumber operation located in Brassac, France. The transaction had no
significant effect on the Company's financial statements.

    2006

    Restructuring and asset impairment charges:

    During the September 2006 quarter, the Company commenced a process to
dispose of a small pine lumber operation located in Brassac, France, and two
international sales offices located in Ireland and in the United States. Net
assets of $8 million have been reclassified in other assets as held for sale.
An impairment charge of $4 million was recorded to adjust the net assets to
fair value. The Company also recorded a non-cash charge of $1 million relating
to the write down of its investment in a Chilean lumber operation.
    Also, during the September 2006 quarter, the Company incurred a charge of
$9 million relating to the reduction in carrying value of the spare parts
inventory at the Smooth Rock Falls, Ontario, pulp mill. The mill was idled
indefinitely at the end of July 2006. The curtailment also resulted in a
further charge of $5 million relating to the reduction of the unamortized
past-service pension costs.
    During the March 2006 quarter, the Company recognized an impairment charge
of $169 million related to the property, plant and equipment of the Smooth
Rock Falls, Ontario, pulp mill as the majority of its long-lived assets are no
longer recoverable and exceed their fair value. Gain on sale of other assets:

    Gain on sale of other assets:

    During the September 2006 quarter, the Company completed the sale of the
remaining assets of the remanufacturing facility, which had been permanently
closed during the June 2005 quarter. The Company recorded a gain of $1 million
in respect to this transaction.
    During the June 2006 quarter, the Company's joint venture Temlam Inc.
completed the sale of its metal plates and webs operations located in Bolton,
Ontario. Based on the Company's 50% ownership, consideration received amounted
to $11 million including net working capital of $2 million. As a result of
this transaction, the Company recorded a gain of $5 million.
    The following table provides an analysis of the other items by business
segment:

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                                        2007
                                  Forest                               Conso-
                                products        Pulp       Paper     lidated
    -------------------------------------------------------------------------
    Other assets                      (1)          -          (3)         (4)
    Lumber duties                   (238)          -           -        (238)
    Pensions                           -          17           -          17
    Gain on land sales               (14)          -           -         (14)
    Severance, other labour-
     related and idling costs          -          12           -          12
    -------------------------------------------------------------------------
                                 $  (253)    $    29     $    (3)    $  (227)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                                        2006
                                              Forest                   Conso-
                                            products        Pulp     lidated
    -------------------------------------------------------------------------
    Fixed assets write-down                  $     2     $   169     $   171
    Other assets                                   3           9          12
    Pensions                                       -           5           5
    Gain on sale of assets                        (6)          -          (6)
    -------------------------------------------------------------------------
                                             $    (1)    $   183     $   182
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    The following table provides the reconciliation components of the mill
closure provisions:

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                        Quarters                  Years
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------
    Opening balance              $     6     $     9     $     9     $    19
    Adjustment related to
     discontinued operations          (2)         (3)         (3)         (5)
    -------------------------------------------------------------------------
    Adjusted opening balance           4           6           6          14
    -------------------------------------------------------------------------
    Additions: Severance and
                other labour-
                related costs          -           -          10           -
               Idling and other
                costs                  -           -           2           -
    Reversal of mill closure
     provisions                        -           -          (2)          -
    Payments: Severance and
               other labour-
               related costs           -           -         (10)         (4)
              Idling and other
               costs                   -           -          (2)         (4)
    -------------------------------------------------------------------------
    Ending balance               $     4     $     6     $     4     $     6
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    8. Interest, foreign exchange, and other

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                        Quarters                  Years
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------
    Interest on long-term debt   $    28     $    29     $   117     $   119
    Interest on short-term debt        1           5           8          15
    Interest income - lumber
     duties                            -           -         (30)          -
    Interest income - other            -          (2)         (7)         (7)
    Investment income                  -           -           -          (2)
    Interest capitalized
     on construction projects          -          (1)          -          (3)
    -------------------------------------------------------------------------
                                      29          31          88         122

    Amortization of deferred
     financing costs                   1           1           5           5
    Amortization of deferred
     gain on foreign exchange
      contract                         -           -           -         (38)
    Derivative financial
     instruments loss (gain)          (1)          1          (1)          -
    Loss (gain) on consolidation
     of foreign integrated
     subsidiaries                     (5)          1          (6)          1
    Other foreign exchange items      17           1          25           9
    Bank charges and other
     financing expenses                2           2           7           7
    -------------------------------------------------------------------------
                                      14           6          30         (16)
    -------------------------------------------------------------------------
                                 $    43     $    37     $   118     $   106
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    9. Income Taxes

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                        Quarters                  Years
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------
    Earnings (loss) from
     continuing operations
     before income taxes
     and share in earnings
     of a related company        $    25     $   (63)    $   150     $  (367)
    -------------------------------------------------------------------------
    Income taxes based on
     combined federal and
     provincial income tax
     rates of 33.3%
     (2006 - 33.3%)                    9         (22)         50        (123)
    Decrease (increase)
     resulting from:
      Future income taxes
       adjustment due to
       rate enactments                 -           -           1           3
      Change in valuation
       allowance                      11          13         (20)         67
      Rate differential
       between jurisdictions          (3)         (2)        (10)         (8)
      Non taxable portion of
       exchange gain on
       long-term debt                (11)         (1)        (21)         (9)
      Non deductible loss
       on consolidation of
       foreign integrated
       subsidiaries                    -           1           1           1
      Other permanent differences     (3)          1           -          (3)
      Large corporations tax           -          (1)          -           -
    -------------------------------------------------------------------------
                                      (6)         11         (49)         51
    -------------------------------------------------------------------------
    Income taxes expense
     (recovery)                  $     3     $   (11)    $     1     $   (72)
    -------------------------------------------------------------------------
    Income taxes:
      Current                         (7)          1          27          (1)
      Future                          10         (12)        (26)        (71)
    -------------------------------------------------------------------------
    Income taxes expense
     (recovery)                  $     3     $   (11)    $     1     $   (72)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    10. Employee Future Benefits

    The following table presents the Company's future benefit costs:

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                        Quarters                  Years
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------
    Defined benefit pension
     plans                       $     5     $     9     $    21     $    37
    Other employee future
     benefit plans                     1           1           5           9
    Defined contribution
     and other retirement
     plans                             3           3          12          13
    -------------------------------------------------------------------------
                                       9          13          38          59
    Portion included in
     Restructuring charge -
     mill closure (note 7)             -           -          17           -
    -------------------------------------------------------------------------
                                 $     9     $    13     $    55     $    59
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    11. Subsequent Events

    On September 30, 2007, the Aditya Birla Group purchased additional equity
of AV Cell Inc. As the Company did not purchase additional equity, the
percentage ownership of the Aditya Birla Group increased from 50% to 75% and
the Company's ownership declined from 50% to 25%. As a result, a gain of
approximately $3 million will be recorded in the quarter ending December 29,
2007, to reflect the Company's reduced participation in the joint venture. The
Company will also cease applying the proportionate consolidation method to its
investment in AV Cell Inc. and will begin applying the equity method.
    On October 11, 2007, the Company announced the sale of approximately
345 hectares of land located in British Columbia for gross proceeds of
$17 million. As a result of the sale, a gain of $16 million will be recorded
in the quarter ending December 29, 2007.

    12. Comparative figures

    Certain comparative figures have been reclassified to conform with the
financial statement presentation adopted.
    




For further information:

For further information: Michel J. Dumas, Executive Vice President,
Finance & CFO, (819) 627-4268, michel.dumas@tembec.com; John Valley, Executive
Vice President, Business Development & Corporate Affairs, (416) 775-2819,
john.valley@tembec.com; Source: Tembec Inc.


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890