Canfor reports modest profit for quarter

Production was up 24 per cent, reflecting acquisitions, capital improvements and the restart of the Vavenby sawmill

Canfor Corporation recently reported shareholder net income of $4.5 million, or $0.03 per share, for the second quarter of 2012.

This compares to a shareholder net loss of $16.2 million, or $0.11 per share, for the first quarter of 2012 and shareholder net income of $2.1 million, or $0.01 per share, for the second quarter of 2011.

Commenting on the second quarter performance, Canfor president and CEO Don Kayne said, “The improvement in lumber prices and earnings reflected a modest increase in construction activity in North America and continued solid offshore demand for Western SPF lumber products.”

With respect to its recently acquired operations in the Kootenays, Kayne added, “The integration of these operations has gone very smoothly, and the start-up of our upgraded Radium mill in the same south-east Kootenay region of B.C. remains on schedule for the fall of this year.”

The company reported operating income of $26.0 million for the second quarter of 2012, compared to an operating loss of $21.5 million for the first quarter. The positive variance primarily reflected improved results in the lumber segment, where stronger markets supported higher prices.

Compared to the second quarter of 2011 production was up 24 per cent, largely reflecting the recent acquisition in the Kootenays, coupled with increased productivity following various capital improvement projects in 2011 and the restart of the Vavenby sawmill in the third quarter of 2011.

Lumber markets showed signs of improvement in the second quarter of 2012, reflecting stronger underlying demand in both North American and offshore markets. U.S. housing activity continued the upward trend seen in the prior quarter, with housing starts up over three per cent from the previous quarter. Canadian housing starts were also up, increasing 12 per cent from the previous quarter. In China, markets improved as inventories returned to more normal levels following the inventory build early in the previous quarter. Japan demand remained solid through the quarter. Pulp markets were relatively balanced heading into the quarter but saw signs of weakness as the quarter progressed.

 

 

Just Posted

Incumbents and acclaimed mayors win elections all across B.C.’s north

Fraser Lake saw their first female mayor elected

Mayoral results from across B.C.

Voters in 162 municipalities in B.C. set to elect mayor, council, school board and more

Every vote counts: 10 tightest races in B.C.’s municipal elections

Peachland saw their election decided by just one vote

Editor, The Times

Democracy is fragile, needs tending

Trekking Tales

Trekking with a difference—Part two

B.C. sailor surprised by humpback whale playing under her boat

Jodi Klahm-Kozicki said the experience was ‘magical’ near Denman Island

Around the BCHL: Chilliwack Chiefs snag spot in CJHL national rankings

Around the BCHL is a look at what’s happening in the BCHL and the junior A world.

Rural regions get priority for B.C. referendum mail-out

Ballot security measures aim to protect against voter fraud

B.C.’s natural gas supply could see 50% dip through winter due to pipeline blast

It’s been two weeks since the Enbridge pipeline ruptured near Prince George on Oct. 9, sparking a large fireball

Mega Millions, Powerball prizes come down to math, long odds

Biggest myth: The advertised $1.6 billion Mega Millions prize and $620 million Powerball prize aren’t quite real

2 Canadians advance to finals at world wrestling championships

Olympic champion Erica Wiebe just missed joining them with a loss 3-1 to three-time world champion Adeline Gray of the United States in the 76-kg event

VIDEO: Fire destroys historic small-town B.C. restaurant

Two people were injured as fire ripped through the Hedley restaurant around 2:30 a.m. Tuesday

B.C. town’s mayoral race a tie, come down to luck of the draw

Harry Gough led incumbent Cindy Fortin by one vote on election night Saturday

Outdoor retailer MEC vows to boost diversity after online complaint

Mountain Equipment Co-op was criticized for perpetuating a white-only picture of the outdoors

Most Read