Timminco Ltd. (TSX:TIM) reported a third-quarter net loss of $13.7 million amid a 54.7 per cent jump in sales on an increase in solar-grade silicon shipments.

The Toronto-headquartered speciality metals company said Tuesday it shipped 300 tonnes of solar grade silicon in the third quarter, an increase of 36 per cent over the second quarter, at an average selling price of $53 per kilogram.

Timminco's revenues were $69.0 million, up from $44.6 million in the third quarter of 2007. Its third-quarter loss amounted to 13 cents per share compared with a year-earlier loss of $4.6 million or five cents per share.

Excluding one-time items including the closure of the company's Haley, Ont., manufacturing facility, and an asset impairment charge relating to the company's investment in Fundo Wheels AS, a Norwegian company owned 47 per cent by Timminco, net income was $4.4 million.

They were both related to Timminco's magnesium business, which has become less of a focus for the company as its silicon business grows.

The solar-grade silicon is used in solar panels that convert sunlight to electricity.

"Our third-quarter results demonstrate the progress we are making toward our goal to become a leading supplier of solar grade silicon to the solar photovoltaic energy industry," Heinz Schimmelbusch, chairman and CEO of Timminco, said in a statement.

The company said it expects to ship between 1,200 and 1,500 tonnes of solar grade silicon in 2008.

Its silicon group reported sales of $51.2 million, up 70 per cent from a year-earlier $30.0 million.

"The growth was due to an increase in the sales of solar grade silicon and a higher average selling price for silicon metal," the company stated.

Timminco's magnesium group reported sales of $17.8 million, up 22.5 per cent from $14.5 million in the third quarter of 2007.

Timminco shares were up 29 cents to $7.93 in Tuesday trading on the Toronto Stock Exchange. – The Canadian Press