Canfor Corporation is reporting a net income attributable to shareholders of $61.9 million for the first quarter of 2013, compared to $21.31 million for the fourth quarter of 2012 and a shareholder net loss of $18.01 million for the first quarter of 2012.
The shareholder net income for the first quarter of 2013 included various items affecting comparability with prior periods as well as certain required IFRS accounting adjustments related to the company’s 50% interest in Canfor-LP OSB Limited Partnership, which had an overall positive impact on the company’s results of $8.4 million. After adjusting for such items, the company’s adjusted shareholder net income for the first quarter of 2013 was $70.3 million, up $50.0 million, from an adjusted shareholder net income of $20.3 million, for the fourth quarter of 2012, and an adjusted shareholder net loss of $24.1 million, for the first quarter of 2012.
Canfor reported operating income of $100.0 million (adjusted $111.0 million) for the first quarter of 2013, more than double the $49.0(1) million recorded for the fourth quarter of 2012.
Improved results reflected a strengthening U.S. housing market and improved operating performances at the company’s lumber and pulp mills. Lumber sales realizations experienced strong gains during the quarter, with both Western Spruce/Pine/Fir (SPF) and Southern Yellow Pine (SYP) products appreciating to levels not seen in almost eight years. The previous quarter results included a one-time accounting gain related to the company’s salaried post retirement benefit plans.
Commenting on the first quarter performance, Canfor’s President and CEO, Don Kayne, said, “We are encouraged by the stronger lumber markets and steady improvement in the U.S. housing market. Global pulp markets improved slightly as we saw some modest upward movement in prices ahead of the seasonally stronger spring period.” Kayne added that the company’s lumber and NBSK pulp mills saw significant uplifts in productivity as the quarter progressed. “We are seeing positive results from the significant capital improvements we have made in the last few years,” said Kayne.
Looking ahead, North American lumber consumption is forecast to improve slightly through the balance of 2013 as U.S. housing activity continues to gradually gain momentum. Canadian markets are anticipated to remain relatively slow due to tempered housing activity, while offshore markets are projected to see modest growth in demand and stable prices. NBSK pulp markets are projected to remain fairly challenging through the second quarter of 2013. Canfor Pulp announced an increase in the North American NBSK pulp list price of US$30 per tonne in April 2013.
Canfor Reports Results for First Quarter of 2013 (Canfor)