News

Canfor adjusted net earnings surpass $1 billion

On Thursday, the company reported $721.2 in adjusted net income for its second quarter, boosting the year-to-date total to nearly $1.16 billion - roughly double the figure Canfor reached over the course of 2020 when lumber prices began to skyrocket.

Canfor’s President and Chief Executive Officer, Don Kayne, called the results “exceptional” and credited “solid operational performance” for enabling the company to “capitalize on strong global lumber fundamentals.”

“Our pulp business successfully leveraged favourable pulp market conditions and improved productivity to record strong financial results for the quarter,” Kayne added.

Random-length western spruce, pine and fire 2x4 #2 and better continued to climb and reached a record high of US $1,630 per thousand board feet in early May but has since declined sharply finishing at US $875.

Looking ahead, the company is predicting a more challenging third quarter as a result of the reduced interest in repairing and remodeling and some moderation in new home construction.

Pulp and paper reported $36.2 million in net income, up from a $1.1-million loss for the second quarter in 2020. Year-to-date, net income now stands at $8.4 million.

The list price for northern bleached softwood kraft (NBSK) to China averaged US $962 per tonne, up US $79 from the first quarter.

Prices on that front are also expected to soften during the third quarter due to “tepid Chinese demand and above-average global pulp inventory levels combined with the traditionally slower summer months.”

Weakness experienced in the markets for bleached chemi-thermo mechanical pulp (BCTMP), especially in Asia, are expected to continue into the third quarter.

Combined, the downtime is projected to reduce NBSK pulp production by about 30,000 tonnes and BCTMP production by an estimated 12,000 tonnes.
Read more on Toronto Star
News Topics :
Similar Articles :
Business
The work from home trend that drove lumber prices to record levels and helped producer Canfor Corp. realize record high revenues in the third quarter is expected to continue to provide benefits...
Canada
Buoyed by an “unexpected increase in demand and record global pricing, ” forest products producer Canfor recorded $574.6 million in adjusted net income for 2020, according to an update issued Wed.,...
Business
VANCOUVER Canfor Corp. reported a first quarter profit of $427.8 million compared with a loss a year ago, boosted by record results in its lumber business and improved results in...
Business
VANCOUVER Canfor Corp. is reporting a large year over year increase in net income in its latest quarter as surging lumber prices helped its revenues to more than double to a...
Business
VANCOUVER Canfor Corp. says its net profit surged in the third quarter on record lumber earnings that were driven by an unprecedented increase in prices. The Vancouver based forest products...