Rayonier Advanced Materials Inc. reported first quarter 2019 net loss of $22 million, or $(0.52) per diluted common share, compared to net income of $24 million, or $0.38 per diluted common share for the same prior year quarter ended 2018. The decrease in net income is due primarily to lower commodity sales prices, higher hardwood costs, and operational issues in High Purity Cellulose. “Our first quarter operating and financial results were disappointing and not reflective of the earnings potential of the Company. With unplanned production downtime in Temiscaming due to unforeseen boiler issues and higher hardwood costs in Jesup resulting from extreme periods of prolonged rainfall in the U.S. Southeast, the High Purity Cellulose segment significantly underperformed expectations in the quarter. Additionally, weaker lumber, pulp, and paperboard markets negatively impacted our results,” said Paul Boynton, Chairman, President and Chief Executive Officer. “We are actively addressing the High Purity Cellulose issues, which we believe will improve financial performance building sequentially through the remainder of 2019.” Click Read More below for additional information.
Canfor Corporation (TSX:CFP) announced today it will be closing its Isle Pierre sawmill, which is located near Prince George, British Columbia. The closure will take effect in the third quarter of 2020 following an orderly wind down of operations.
The closure is a result of an insufficient supply of economically viable timber following the Mountain Pine Beetle epidemic, coupled with the major global economic downturn as a result of the COVID-19 pandemic.
“Unfortunately, the ongoing economic devastation caused by the COVID-19 pandemic has resulted in the urgent need for Canfor to make this difficult decision,” said Don Kayne, President and CEO. “We know today’s announcement will have a significant impact on our employees, contractors, their families and the local communities, which we deeply regret. We will work hard to redeploy as many employees as possible to other opportunities throughout the company.”
Based on the current one-shift operation, Isle Pierre sawmill has an annual production capacity of approximately 120 million board feet.