Canfor Reports Results for Third Quarter of 2023

  • Q3 2023 consolidated operating loss of $65 million, including a $49 million operating loss from the pulp business; adjusted operating loss of $86 million; adjusted shareholder net loss of $19 million, or $0.16 per share
  • Continued strong results in the US South; solid European results despite seasonal downtime; another challenging quarter for Western Canada
  • Persistent pressure on global lumber market demand and pricing through much of the quarter
  • Market-driven curtailments in Western Canada & seasonal downtime in Europe led to lower shipments
  • Confirmed future investment of approximately $200 million in a new, state-of-the-art manufacturing facility in Houston, British Columbia
  • Challenging results for Canfor Pulp despite stable global pulp market fundamentals; Northwood NBSK Pulp Mill scheduled maintenance completed as planned; restart delayed due to operational challenges

For the third quarter of 2023, the Company reported a consolidated operating loss of $65.1 million, which included a $49.3 million operating loss from Canfor Pulp Products Inc. (“CPPI”). This compares to a consolidated operating loss of $66.7 million in the second quarter of 2023, $37.9 million of which was attributed to CPPI.

Results in the current quarter include a net $20.8 million reversal of a previously recognized inventory write-down, principally driven by the lumber segment, as well as a net duty recovery of $43.3 million (US$34.7 million) resulting from the finalization of countervailing (“CVD”) and anti-dumping duty (“ADD”) rates applicable to the fourth period of review (“POR4”).

Commenting on the Company’s third quarter results, Canfor’s President and Chief Executive Officer, Don Kayne said “Although global lumber markets remained under pressure in the quarter, our US South operations continued to deliver strong earnings. When combined with solid earnings from Europe and slightly better results from our Western Canadian operations, this outcome underscores the importance of our global diversification strategy. For our pulp business, this was a difficult quarter as global pulp market conditions continued to be challenged with the oversupply of product and tepid demand, and our operations faced significant planned and unplanned downtime that continued into the fourth quarter.”
details at: https://www.canfor.com/docs/default-source/news-2023/2023_q3_cfp_press-release_tsx.pdf?sfvrsn=def5e291_2

Related Posts

In Line with its Strategy, Cascades Announces the Monetization of its Controlling Interest in RDM Group

Cascades Inc. is pleased to announce that it has entered into an agreement with an affiliate of funds managed by affiliates of Apollo Global Management, Inc. to sell its 57.6% equity interest in Reno De Medici S.p.A. for an all-cash price of €1.45 per share, corresponding to a total net cash consideration of approximately €315.3 million. The purchase price is not subject to adjustment, except in case of potential leakages of value to the seller, provided that RDM's 2020 dividend that was paid to the shareholders in May 2021 will not be considered a leakage. The selling price represents a 24% premium to RDM's 90-day volume weighted moving average share price, and a 6.9x multiple to RDM's last twelve months adjusted operating income before depreciation as of March 31, 2021. Upon closing of the recently announced acquisition of Eska Group, the RDM group operations will grow to nine mills and five specialized cutting and sheeting centers across Europe and the USA.

Klabin launches PineFluff eXcel, a fluff pulp made from a mix of softwood and hardwood fibers

Committed to bringing to market innovative solutions that increase productivity and sustainability, Klabin announces the launch of PineFluff eXcel, a fluff pulp made from a mix of fibers (eucalyptus hardwood pulp and pine softwood pulp) targeting the hygiene products market (baby and adult diapers, sanitary pads, pet mats, etc.). A global pioneer in combining pine and eucalyptus fibers, the solution expands alternatives for innovative designs that improve aspects such as fluid retention and distribution as well as softness of the end product reaching consumers. Laboratory studies showed excellent potential for defibrated material, which enhances the perception of softness to touch and comfort during product use. The solution also brings competitive advantages for distribution logistics, packaging optimization and lower energy consumption during production.

Koehler Paper Contributes Expertise to Ellen MacArthur Foundation Plastics Initiative’s ‘Flexible Packaging Project’

Flexible packaging is the fastest growing plastic packaging category. Because it is predominanty single-use, with very low recycling and high leakage rates, it is also by far the most challenging market segment to address on the journey towards a circular economy. Koehler Paper played an important part in the latest project of the international charity “Ellen MacArthur Foundation”, to point out options for a circular economy in flexible packaging. The Ellen MacArthur Foundation, an international charity, was launched in 2010 with the aim of accelerating the transition to the circular economy. They create evidence-based original research on the benefits of a circular economy, and how it can contribute to solving global challenges like climate change and biodiversity loss.
Back To Top
×Close search
Search