Canfor Corporation recently reported total net income of $32.5 million for the first quarter of 2010, compared to a net loss of $9.1 million for the fourth quarter of 2009 and a net loss of $69.9 million for the first quarter of 2009. As a result of the Company’s adoption in 2010 of a new accounting standard, which requires the reclassification of non-controlling interests from long-term liabilities into equity, reported total net income now comprises both net income attributable to equity shareholders and non-controlling interests. The comparative prior periods have been adjusted to be shown on the same basis.
The Company’s net income available to its equity shareholders was $15.6 million, or $0.11 per share, for the first quarter of 2010, up $32.6 million from a comparable net loss of $17.0 million, or $0.12 per share, for the fourth
quarter of 2009 and an improvement of $74.4 million from the net loss of $58.8 million, or $0.41 per share, reported for the first quarter of 2009.
Lumber and pulp prices increased significantly in the first quarter of 2010, and were the major reason for the Company’s improved results for the quarter. Although U.S. housing activity showed only a modest improvement
from the historically low levels of the previous quarter, North American lumber prices for Western Spruce/Pine/Fir ("SPF") and Southern Yellow Pine ("SYP") recorded strong gains mostly as a result of various supply factors. Northern Bleached Softwood Kraft ("NBSK") pulp prices also moved up in the first quarter, reflecting improved demand, continued low global pulp inventory levels and the major disruption to pulp production caused by the Chilean earthquake in late February. The Canadian dollar edged towards parity with the US dollar during the quarter, partially offsetting the pricing gains for Canfor’s Canadian operations.
