CANFOR TRIMS LOSSES
Losses for Vancouver, BC-based Canfor Corporation dropped to just $17 million or 12 cents per share for the 4th quarter of 2009 compared to $230 million or $1.61 per share for the same time period in 2008. On an annual basis, Canfor lost $70 million for 2009 compared to $345 million for 2008.
“Despite improved pulp markets and further progress in cost reduction efforts, the depressed U.S. housing sector continued to weigh heavily on the financial performance of our core lumber business,” commented Canfor president Jim Shepard in a company news release. In addition to being one of Canada’s largest lumber producers, Canfor has a 50.2 per cent ownership in the Canfor Pulp Income Fund, which reports its earnings separately.
The company said U.S. housing activity showed no improvement through the last quarter of 2009, with U.S. housing starts remaining at historically low levels. They did however say pries for several Western Spruce/Pine/Fir (SPF) lumber products “edged” up through the quarter, mostly as a result of further market curtailments. The company has mills in the U.S. that produce Southern Yellow Pine (SYP), but they said SYP prices for most products were down for the fourth quarter.
“While we are cautiously optimistic that the worst of the downturn is behind us, the road ahead will not be without its challenges,” said Shepard while adding that the company will be managing production levels accordingly.
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