Closure costs burden Canfor result

November 12, 2015

By: Euwid

One-off costs totalling Can$19.4m in connection with the closure of the Canal Flats sawmill in British Columbia, as well as declining selling prices on softwood-lumber markets in North America and Asia have resulted in the third quarter in a sharp fall in operating result at Canfor. At Can$8.5m, the operating result was down year on year by 90%. The concern’s net result slipped into the red, at minus Can$17.3m. The operating result achieved by the Lumber division decreased to minus Can$26.9m, down from plus Can$5.1m in the previous quarter and from Can$59.6m in the third quarter of 2014. Softwood lumber production in the third quarter totalled 1.228bn bdft, representing year-on-year growth of 14%. At 926.6m bdft, 75.5% of production were accounted for by SPF ranges, while the remaining 301.8m bdft, or 24.5% were accounted for by southern yellow pine ranges (SYP). Canfor delivered 1.343bn bdft of lumber from the beginning of July until the end of September. The rise in SYP volume was partly the result of the takeover completed at the beginning of the year of 55% holdings in the two SYP sawmills of Balfour Lumber Company, and Beadles Lumber Company. The second phase of the takeover of Scotch & Gulf Lumber had already been completed in November 2014.

By: Euwid

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