Canfor Pulp Reports Results for Second Quarter of 2020

Overview
• Second quarter of 2020 reported operating loss of $6 million, includes $8 million inventory write-down
• Net loss of $1 million, or $0.02 per share

The Company reported an operating loss of $6.3 million for the second quarter of 2020, down $12.4 million from operating income of $6.1 million reported for the first quarter of 2020. Reported results for the second quarter of 2020 included an $8.2 million finished pulp and raw material inventory write-down at period end. After adjusting for this, the Company’s operating income was $1.9 million for the second quarter of 2020, up $6.5 million from a similarly adjusted operating result in the previous quarter.

The Company’s operating results for the second quarter of 2020 reflected direct and indirect impacts of the coronavirus outbreak (“COVID-19”) on global markets, and more specifically the pulp and paper business. Global pulp prices improved during April, resulting largely from increased demand for at-home tissue coupled with supply disruptions, principally in Latin America and Australasia; however, prices came increasingly under pressure in the back half of the current quarter reflecting a sharp decline in printing and writing demand combined with more moderated tissue purchasing activity. For the second quarter as a whole, Canadian-dollar pulp unit sales realizations showed a modest increase compared to the previous quarter, boosted by slightly higher Northern Bleached Softwood Kraft (“NBSK”) prices to North America, improved prices for Bleached Chemi-Thermo Mechanical Pulp (“BCTMP”) and a weaker Canadian dollar. The effect of COVID-19 on lumber sawmill operating rates in the BC Interior, particularly in April and May, materially impacted residual fibre supply to the Company’s Prince George (“PG”) based operations, resulting in a three-week curtailment at the Company’s Northwood NBSK pulp mill (“Northwood”) in the current quarter, as well as increased fibre costs reflecting a higher proportion of more expensive whole log chips.

Global softwood pulp producer inventories at the end of June 2020 were significantly above the balanced range at 42 days of supply, an increase of six days supply compared to March 2020 (market conditions are generally considered balanced when inventories are in the 27-34 days of supply range).
details at: https://www.canfor.com/docs/default-source/news-2019/2020_q2_cppi_press_release.pdf?sfvrsn=fd11ee91_2

Related Posts

Van Gilse kilo granulated sugar bags made from sugar beet paper

As from this summer, sugar beet pulp will be used to make Van Gilse kilo bags of granulated sugar. The kilo bags will be on sale in supermarkets. Sugar beet paper is a ground breaking innovation of Cosun Beet Company and paper manufacturer Crown Van Gelder. Step by step, the paper packaging will be introduced for other Van Gilse products. The sugar beet paper was extensively tested with paper manufacturer Crown Van Gelder before being taken into use. It is suitable for direct food contact and is strong, machine processable and easy to open and close. Sugar beet paper is made in part from beet pulp, a by-product of the sugar production process that is currently used as an animal feed and a source of green gas. By replacing 20% of the wood fibres in the paper, sugar beet fibres reduce the environmental impact by 16%.

Mativ Announces Completion of Sale of Engineered Papers Business

Julie Schertell, CEO of Mativ, commented, “We are very pleased with the completion of the sale of Engineered Papers. They have a great team and strategy in place for a successful future. For Mativ, this is an important part of unlocking our strategy to become a leading manufacturer of specialty materials. As we head into 2024, over 80% of our revenue will be from our Advanced Technical Materials segment, where we have strong positions in large, growing, profitable markets.” The net impact of the transaction on Mativ’s debt is expected to be a reduction of more than $600 million, which equates to approximately 35% of Mativ’s outstanding debt balance as of the end of the third quarter, and is subject to customary post-closing adjustments. This debt reduction is expected to be effective early December 2023. “This transaction fully aligns with our commitment to continued debt reduction and operational focus in attractive markets that accelerate our growth and expand our margins,” stated Schertell. “It marks a key milestone in the transformation of Mativ and aligns with our strategy to focus our efforts, accelerate growth, and drive value for our shareholders.”

Ahlstrom-Munksjö to restart existing saturator in its Turin plant in Italy to support demand for high performance filtration media globally

Ahlstrom-Munksjö will restart one of its saturator in its Turin plant in Italy to support strong demand for high performance filtration media. “Based on current strong customer demand, we see a need to expand our saturating capacity,” said Giuseppe Costa, VP Filtration EMEA and APAC. “We have evaluated various options and came to the conclusion that restarting the saturator we already have in place in Turin is the quickest and most reliable way to bring qualified capacity to the marketplace in a very short period,” he added. This decision follows a series of investments announced by the group in the last few years to strengthen the company’s industrial platform and support demand growth in the industrial and engine filtration industry globally.
Back To Top
×Close search
Search