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

BREAKING: West Fraser announces indefinite closure of Chasm sawmill

The third shift for the 100 Mile House location will also be eliminated

Winter Waterfalls project brings 7,500 visitors

Pilot project offered a unique waterfall viewing experience

The importance of cleaning your hummingbird feeder

Feeders need to be thoroughly cleaned at least every three days in hot weather

Author sets her sights on tourism market

Eleanor Deckert promotes reading wholesome

PHOTOS: Elusive ‘ghost whale’ surfaces near Campbell River

Ecotourism operator captures images of the rare white orca

Victoria mom describes finding son ‘gone’ on first day of coroners inquest into overdose death

Resulting recommendations could change handling of youth records amidst the overdose crisis

Dash-cam video in trial of accused cop killer shows man with a gun

Footage is shown at trial of Oscar Arfmann, charged with killing Const. John Davidson of Abbotsford

Suicide confirmed in case of B.C. father who’d been missing for months

2018 disappearance sparked massive search for Ben Kilmer

Eight U.S. senators write to John Horgan over B.C. mining pollution

The dispute stems from Teck Resources’ coal mines in B.C.’s Elk Valley

Threats charge against Surrey’s Jaspal Atwal stayed

Atwal, 64, was at centre of controversy in 2018 over his attendance at prime minister’s reception in India

Anti-vaxxer Robert F. Kennedy Jr. to speak in Surrey

He’s keynote speaker at Surrey Environment and Business Awards luncheon by Surrey Board of Trade Sept. 17

Otters devour 150 trout at Kootenay hatchery

The hatchery has lost close to 150 fish in the past several months

B.C. church’s Pride flag defaced for second time in 12 days

Delta’s Ladner United Church says it will continue to fly the flag for Pride month

Most Read