Canfor Reports Results For First Quarter of 2021

Overview

• Record quarterly reported operating income of $603 million driven by historically high lumber prices and improved global pulp market conditions; record-high quarterly sales of $1.94 billion
• Shareholder net income of $428 million, or $3.42 per share
• Net debt of $85 million at March 31, 2021; $225 million repayment of term debt in the current quarter
• Cumulative cash deposits of $615 million on countervailing and anti-dumping duties at March 31, 2021

For the first quarter of 2021, the Company reported operating income of $602.6 million, $183.0 million higher than operating income of $419.6 million reported for the fourth quarter of 2020, reflecting record results for the lumber segment and improved results in the pulp and paper segment.

In the lumber segment, earnings increased $145.7 million quarter-over-quarter, to an all-time high $606.7 million. These results largely reflected continued strength in global lumber market fundamentals, with demand continuing to outpace available supply and driving global benchmark lumber prices to new historical highs. This unprecedented pricing substantially outweighed the impacts of higher market-related log costs in Western Canada, combined with moderately lower North American shipment volumes stemming from transportation constraints, and a 2 cent, or 3%, stronger Canadian dollar.

Global lumber market fundamentals remained exceptionally strong in the first quarter of 2021, principally driven by sustained high levels of North American demand. The North American market continued to benefit from new home construction activity that reflected the ongoing urban-to-suburban shift, strong demand in the repair and remodeling sector and lean inventory in the supply chain.
further details at: https://www.canfor.com/docs/default-source/news-2021/2021_q1_cfp_press_release.pdf?sfvrsn=1264ef91_2