Canfor Reports Results for First Quarter of 2022

Overview
• Q1 2022 reported operating income of $742 million driven by strong lumber segment results with near record-high North American lumber pricing and strong earnings for the Company’s European lumber operations
• Shareholder net income of $534 million, or $4.29 per share
• Completed acquisition of Millar Western Forest Products Ltd.’s (“Millar Western”) solid wood operations and associated tenure for $440 million, including net working capital
• Announced $165 million (US$130 million) investment in the US South to significantly upgrade and expand Urbana’s sawmill and planer facility
• Announced the implementation of a comprehensive plan to achieve net-zero carbon emissions by 2050

For the first quarter of 2022, the Company reported operating income of $741.9 million compared to an operating loss of $66.8 million in the fourth quarter of 2021. After taking account of adjusting items, largely comprised of asset impairments in the previous quarter, the Company’s adjusted operating income for the current quarter of $740.8 million was $524.5 million higher than adjusted operating income of $216.3 million reported for the fourth quarter of 2021, primarily reflecting a significant increase in lumber segment earnings, and to a much lesser extent, improved pulp and paper segment results.

Commenting on the Company’s first quarter results, Canfor’s President and Chief Executive Officer, Don Kayne, said, “We are very pleased to see the sustained strength in global lumber markets continuing into 2022 and while our pulp business continued to face challenges, we also saw improved results in the quarter. A solid operating performance across all of our lumber operating regions allowed us to capitalize on these favourable market fundamentals and execute on our diversification strategy with the recent acquisition of Millar Western. Despite these factors, the global supply chain crisis continues to negatively impact our operations and has resulted in curtailed and reduced lumber and pulp operating schedules. We will continue to assess the effects of this crisis and will make adjustments to our operating schedules as conditions evolve. We greatly appreciate our employees’ ongoing resilience in managing through the supply chain challenges.”
details at: https://www.canfor.com/docs/default-source/news-2022/2022_q1_cfp_press_release_tsx.pdf?sfvrsn=8255e091_2

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