Canfor Corp. Operating Loss Further Widened in Q1 2020

SEATTLE (Scrap Monster): Canfor Corporation declared financial results for the first quarter of 2020. The operating loss widened further than the sequential quarter. The lumber segment operating earnings declined significantly, whereas those from pulp and paper segment improved during the quarter.

The company reported an operating loss of $88.8 million in Q1 2020. The loss widened further when matched with the operating loss of $59.6 million in Q4 2019. This includes a $63.0 million inventory write-down for the lumber operating segment and net duty expense of $44.4 million. Canfor reported adjusted shareholder net loss of $26 million or $0.21 per share.

The total lumber shipments were 1.25 billion board feet, slightly higher from the previous quarter. The lumber production totalled 1.29 billion board feet, 3% higher from Q4 last year. Canfor’s lumber unit manufacturing and product costs remained more or less unchanged. The European SPF operations continued to deliver good performance. Meantime, pulp production totalled 298,000 tonnes. Also, the company shipped 23,000 tonnes of pulp.

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Canfor expects the lumber market conditions to remain extremely volatile during the rest of the current year. The U.S. home construction activity is likely to remain at depressed levels. The impacts of COVID-19 are feared to weigh heavily on the 2020 financial performance, said Don Kayne, President and Chief Executive Officer, Canfor.