Canfor Reports Results for First Quarter of 2023

Overview
• Q1 2023 adjusted operating loss of $146 million; adjusted shareholder net loss of $145 million, or $1.20 per share
• Strong earnings from the Company’s European operations and more modest earnings from its US South operations outweighed by continued pricing pressure on its Western Canadian operations
• Increased lumber production & shipments notwithstanding North American market-related challenges; uplift in pulp production despite ongoing fibre constraints

The Company reported an operating loss of $208.5 million for the first quarter of 2023, compared to an operating loss of $308.0 million in the fourth quarter of 2022. After adjusting for certain one-time items, including a $62.1 million inventory write-down in the current period, the Company’s operating loss was $146.4 million for the first quarter of 2023, a $17.4 million improvement compared to an adjusted operating loss of $163.8 million for the fourth quarter of 2022. These results reflected improved pulp and paper segment results, offset in part by a decline in lumber segment earnings.

Commenting on the Company’s first quarter results, Canfor’s President and Chief Executive Officer, Don Kayne, said, “This was another challenging quarter for our lumber business. Strong earnings from our European operations and more modest earnings from our US South operations were overshadowed by ongoing weakness in Western Spruce/Pine/Fir lumber pricing, which resulted in further temporary capacity reductions across our Western Canadian sawmills. In addition, we announced and began implementing a restructuring of our British Columbian lumber operations to better align manufacturing capacity with the available long-term fibre supply. Despite improved earnings, this was also a difficult quarter for our pulp business, driven by the wind down of the pulp line at the Prince George Pulp and Paper mill. While these restructuring decisions for both our lumber and pulp business will create a more sustainable operating footprint for Canfor going forward, we sincerely regret the impact on our employees, their families, contractors and our local communities.”
details at: https://www.canfor.com/docs/default-source/2023-news/2023_q1_cfp_press_release_tsx.pdf?sfvrsn=c41be191_2

Related Posts

AF&PA Releases August 2024 Printing-Writing Monthly Report

Total printing-writing paper shipments increased 4% in August compared to August 2023. U.S. purchases of total printing-writing papers increased 11% in July compared to the same month last year. Total printing-writing paper inventory levels in August decreased 4% when compared to July 2024. Individually, U.S. shipments in all 3 major P-W categories (UFS, CFS and MECH) exhibited a combination of positive and negative changes in August compared to the same period last year. Uncoated Free Sheet shipments decreased 1%, Coated Free Sheet shipments increased 16%, and Mechanical papers shipments increased 17%.

ITA International Trade Administration : Preliminary Determination in the Countervailing Duty Investigation of Imports of Uncoated Groundwood Paper from Canada

• Commerce has calculated a preliminary subsidy rate of 6.09 percent for mandatory respondent Catalyst Paper Corporation (Catalyst), 9.93 percent for mandatory respondent Kruger Trois-Rivieres L.P. (Kruger), 4.42 percent for mandatory respondent Resolute FP Canada Inc. (Resolute) and 0.65 percent for voluntary respondent White Birch Paper Canada Company NSULC (White Birch). All other producers/exporters in Canada have been assigned a preliminary subsidy rate of 6.53 percent. • As a result of the preliminary affirmative determination, Commerce will instruct U.S. Customs and Border Protection (CBP) to require cash deposits based on these preliminary rates. • The merchandise covered by this investigation is certain paper that has not been coated on either side and with 50 percent or more of the cellulose fiber content consisting of groundwood pulp, including groundwood pulp made from recycled paper, weighing not more than 90 grams per square meter. Groundwood pulp includes all forms of pulp produced from a mechanical pulping process, such as thermo-mechanical process (TMP), chemi-thermo mechanical process (CTMP), bleached chemi-thermo mechanical process (BCTMP) or any other mechanical pulping process. The scope includes paper shipped in any form, including but not limited to both rolls and sheets. Certain uncoated groundwood paper includes but is not limited to standard newsprint, high bright newsprint, book publishing, directory, and printing and writing papers. The scope includes paper that is white, off-white, cream, or colored. Click Read More below for additional information.

Rayonier Advanced Materials Announces $146 (€133) Per Ton Cost Surcharge

Rayonier Advanced Materials Inc. announced a cost surcharge of USD 146 (EUR 133) per metric ton applicable to all shipments of its cellulose specialties and viscose-grade products. This surcharge is necessitated by the impacts of rapidly escalating inflation and directly correlates to the significant increase in the Company’s costs for energy, logistics, chemicals, and wood. The surcharge is effective immediately and will be applied to all shipments April 1, 2022, or later.
Back To Top
×Close search
Search