Canfor shows third quarter profits

Canfor recently reported shareholder net income of $28.4 million, or $0.20 per share, for the third quarter

Canfor Corporation recently reported net income attributable to shareholders (“shareholder net income”) of $28.4 million, or $0.20 per share, for the third quarter of 2013.

This compares to $110.3 million, or $0.77 per share, for the second quarter of 2013 and $20.5 million, or $0.14 per share, for the third quarter of 2012.

For the nine months ended September 30, 2013, the company’s shareholder net income was $200.6 million, or $1.41 per share, compared to $5.1 million, or $0.03 per share, reported for the comparable period of 2012.

In contrast to a sharp drop in the second quarter, lumber prices in the third quarter showed a gradual improvement, supported by relatively solid global demand that, in part, reflected improving home prices and low inventory levels in the U.S.

Canadian housing starts rose four per cent from the second quarter, contributing to a marginal increase in lumber consumption. Continued solid demand from offshore markets supported steady offshore lumber shipments in the third quarter.

As previously announced, Canfor expects to close its Quesnel sawmill in March of next year. The company has entered into an agreement with West Fraser to exchange forest tenure rights, a non-replaceable license and undercut volumes near Quesnel for the equivalent near Houston.

“The additional fibre we have been able to secure in the exchange agreement with West Fraser enhances the fibre requirements of our Houston facility,” said Canfor president Don Kayne. “We are committed to minimizing the impact of this closure on our Quesnel employees.”

 

The proposed timber swap is to be reviewed by Canada’s Competition Bureau.