EPaper

Canfor, West Fraser post big quarter profits

MARK NIELSEN

Trouble getting product from Western Canadian operations to market appeared to have little affect on the bottom lines of Canfor Corp. and West Fraser Timber Co. Ltd., during the first quarter of this year.

Canfor reported $534 million in net income or $4.29 per share on Tuesday, compared to $427.8 million over the same period last year.

Last week, West Fraser reported US$1.09 billion in earnings for the quarter, or US$10.25 per share, compared to US$334 million or US$3.13 per share for the first quarter of 2021.

Near record-high North American lumbers prices and strong earnings for the company’s European lumber operations were credited for the outcome at Canfor.

“We are very pleased to see the sustained strength in global lumber markets continuing into 2022 and while our pulp business continued to face challenges, we also saw improved results in the quarter,” CEO Don Kayne said in a news release.

“A solid operating performance across all of our lumber operating regions allowed us to capitalize on these favourable market fundamentals and execute on our diversification strategy with the recent acquisition of Millar Western.

“Despite these factors, the global supply chain crisis continues to negatively impact our operations and has resulted in curtailed and reduced lumber and pulp operating schedules. We will continue to assess the effects of this crisis and will make adjustments to our operating schedules as conditions evolve.

“We greatly appreciate our employees’ ongoing resilience in managing through the supply chain challenges.”

On March 1, Canfor said it had completed purchase of Alberta-based Millar Western Assets, adding two sawmills in Whitecourt and Fox Creek and Spruceland Millworks in Acheson.

Conversely, production at its Western Canadian lumber and pulp operations was curtailed in the face of transporation issues brought on by a “global supply chain crisis.”

Canfor Pulp Products Inc. lost $19.9 million on $219.7 million in sales due to ongoing transportation challenges and pulp supply disruptions. That compared with a net loss of $101.1 million on $249.3 million of revenues in the fourth quarter and profit of $8.4 million on $262.4 million of revenues in the first quarter of fiscal 2021.

NEWS

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2022-05-12T07:00:00.0000000Z

2022-05-12T07:00:00.0000000Z

https://princegeorgecitizen.pressreader.com/article/281535114583821

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