The loss, which is significantly lower than the $1.8bn loss it posted in the fourth quarter of 2007, follows a year of cost-cutting at the company, which reduced its workforce by 12%.

The group, which is currently operating under creditor protection, following its collapse last year, reported a revenue drop of $700m over the year to $4bn.

President and chief executive Jacques Mallette said that the industry was facing "significant challenges in the current economic climate".

"We managed to achieve these objectives while dealing with the added complexity and challenges of operating under court supervised creditor protection in both the US and Canada," he said.

"This is a tribute to our employees, our customers, and our suppliers, who have demonstrated their confidence in us throughout this period."

This month, the company extended its creditor protection until April 27 in the US and May 31 in Canada.

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