Canfor reported 4Q operating loss of $59.6 million

Photo: Canfor

For the 4Q 2019, Canfor Corporation reported an operating loss of $59.6 million, halving the operating loss of $120.3 million for the 3Q 2019. These results reflected improved earnings in the lumber and pulp and paper segments as global lumber and pulp markets showed signs of bottoming out through the current quarter and supply and demand fundamentals improved at the end of the year.

Canfor Corporation's 4Q 2019 sales up 7.5% to $1.11 billion, compared to $1.028 billion in 4Q 2018.

For the 2019 year, the company reported an operating loss of $294.3 million and a net loss of $2.10 per share, in sharp contrast to operating income of $608.6 million and net income of $2.78 per share reported for the year ended December 31, 2018.

Don Kayne, Canfor’s President and CEO, said “The challenging global lumber and pulp market conditions of 2019, particularly across all our British Columbia (“BC”) operations, overshadowed the transformational global diversification undertaken by the Company during the year, with the acquisition of Vida and the expansion in our business in the US South. As we move into 2020, BC continues to face difficulties on many fronts and we remain focused on working diligently to minimize the financial impacts of these constraints to our BC operations and overall business. In addition, we look forward to further leveraging benefits from our diversification strategy, while maintaining a focus across all our operations on improving productivity, maximizing fibre utilization and reducing costs and debt levels, so that we are well positioned to fully capitalize on improving market conditions through 2020.”

Source: Lesprom Network