Canfor Reports Results for Third Quarter of 2023

  • Q3 2023 consolidated operating loss of $65 million, including a $49 million operating loss from the pulp business; adjusted operating loss of $86 million; adjusted shareholder net loss of $19 million, or $0.16 per share
  • Continued strong results in the US South; solid European results despite seasonal downtime; another challenging quarter for Western Canada
  • Persistent pressure on global lumber market demand and pricing through much of the quarter
  • Market-driven curtailments in Western Canada & seasonal downtime in Europe led to lower shipments
  • Confirmed future investment of approximately $200 million in a new, state-of-the-art manufacturing facility in Houston, British Columbia
  • Challenging results for Canfor Pulp despite stable global pulp market fundamentals; Northwood NBSK Pulp Mill scheduled maintenance completed as planned; restart delayed due to operational challenges

For the third quarter of 2023, the Company reported a consolidated operating loss of $65.1 million, which included a $49.3 million operating loss from Canfor Pulp Products Inc. (“CPPI”). This compares to a consolidated operating loss of $66.7 million in the second quarter of 2023, $37.9 million of which was attributed to CPPI.

Results in the current quarter include a net $20.8 million reversal of a previously recognized inventory write-down, principally driven by the lumber segment, as well as a net duty recovery of $43.3 million (US$34.7 million) resulting from the finalization of countervailing (“CVD”) and anti-dumping duty (“ADD”) rates applicable to the fourth period of review (“POR4”).

Commenting on the Company’s third quarter results, Canfor’s President and Chief Executive Officer, Don Kayne said “Although global lumber markets remained under pressure in the quarter, our US South operations continued to deliver strong earnings. When combined with solid earnings from Europe and slightly better results from our Western Canadian operations, this outcome underscores the importance of our global diversification strategy. For our pulp business, this was a difficult quarter as global pulp market conditions continued to be challenged with the oversupply of product and tepid demand, and our operations faced significant planned and unplanned downtime that continued into the fourth quarter.”
details at: https://www.canfor.com/docs/default-source/news-2023/2023_q3_cfp_press-release_tsx.pdf?sfvrsn=def5e291_2

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