Lumber giant Canfor posts loss for Q1
Lumber and pulp producer Canfor reported first quarter sales increased more than 6% to 1.17 billion Canadian dollars (US$831.7 million) from first quarter 2019 sales of C$1.15 million (US$817 million).
But the Vancouver, British Columbia-based company posted a net loss of C$70 million (US$49.8 million) compared to a net loss of C$86.6 million (US$61.6 million).
Canfor Corporation (CNW Group/Canfor Corporation)
Canfor also reported that first quarter results include a $63 million inventory write-down for its lumber operating segment, partly offset by a $10.7 million recovery in the inventory write-down provision for its pulp and paper operating segment.
The company said a moderate uptick in the lumber market and favorable conditions at the end of 2019, including North America residential construction activity and remodeling, helped boost sales. But global conditions weakened in late February and March as the COVID-19 crisis spread globally.
Total lumber shipments, at 1.25 billion board feet, were slightly above the previous quarter, with significantly higher European SPF shipments
Total lumber production, at 1.29 billion board feet, was up 3% from the prior quarter.
Earlier this month, Canfor announced a new set of production cuts due to the impact of COVID-19 on the price of lumber and demand.
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The Bottom Line: Sales rise at the Canadian lumber production giant but Canfor posts a $70 million (US$49.8 million) net loss.
What the CEO said: “In this time of significant uncertainty due to the COVID-19 pandemic, our top priorities continue to be ensuring the health and safety of our employees and implementing the necessary measures to safeguard the business,” said Don Kayne, Canfor president and CEO. “While we saw a modest improvement in our results at our lumber and pulp and paper operations in the first quarter, these results were significantly overshadowed by the virus outbreak and the extreme market volatility and major economic turmoil it has caused.
“We are focused on maintaining a strong balance sheet and believe we are well-positioned to weather the impacts of the pandemic. We continue to actively assess the ongoing situation and remain prepared to take further action if necessary.”
Company info: Canfor’s full first quarter 2020 report is available here.
But the Vancouver, British Columbia-based company posted a net loss of C$70 million (US$49.8 million) compared to a net loss of C$86.6 million (US$61.6 million).
Canfor Corporation (CNW Group/Canfor Corporation)Canfor also reported that first quarter results include a $63 million inventory write-down for its lumber operating segment, partly offset by a $10.7 million recovery in the inventory write-down provision for its pulp and paper operating segment.
The company said a moderate uptick in the lumber market and favorable conditions at the end of 2019, including North America residential construction activity and remodeling, helped boost sales. But global conditions weakened in late February and March as the COVID-19 crisis spread globally.
Total lumber shipments, at 1.25 billion board feet, were slightly above the previous quarter, with significantly higher European SPF shipments
Total lumber production, at 1.29 billion board feet, was up 3% from the prior quarter.
Earlier this month, Canfor announced a new set of production cuts due to the impact of COVID-19 on the price of lumber and demand.
###
The Bottom Line: Sales rise at the Canadian lumber production giant but Canfor posts a $70 million (US$49.8 million) net loss.
What the CEO said: “In this time of significant uncertainty due to the COVID-19 pandemic, our top priorities continue to be ensuring the health and safety of our employees and implementing the necessary measures to safeguard the business,” said Don Kayne, Canfor president and CEO. “While we saw a modest improvement in our results at our lumber and pulp and paper operations in the first quarter, these results were significantly overshadowed by the virus outbreak and the extreme market volatility and major economic turmoil it has caused.
“We are focused on maintaining a strong balance sheet and believe we are well-positioned to weather the impacts of the pandemic. We continue to actively assess the ongoing situation and remain prepared to take further action if necessary.”
Company info: Canfor’s full first quarter 2020 report is available here.