VANCOUVER, Feb. 20, 2020 - Canfor Corporation (TSX: CFP) today reported 2019 and fourth quarter 2019 results:
- 2019 reported operating loss of $294 million; adjusted operating loss of $92 million; shareholder net loss of $263 million, or $2.10 per share
- Fourth quarter of 2019 reported operating loss of $60 million; adjusted operating loss of $33 million; shareholder net loss of $39 million, or $0.31 per share
The following table summarizes selected financial information for the Company for the comparative periods:
In contrast to the record-high lumber and pulp prices seen in 2018, weaker than anticipated global lumber and pulp demand for much of 2019 in combination with excess inventory levels gave rise to a sharp drop in market pricing for both lumber and pulp products in the current year. The deterioration in market conditions, in combination with ongoing fibre supply challenges and significant log cost increases in British Columbia ("BC") resulted in extensive temporary and permanent sawmill curtailments across BC, as well as summer curtailments at Canfor Pulp. On a more positive note, 2019 marked a year of transformational global diversification for Canfor with the acquisition of 70% of the Vida Group ("Vida") in early 2019, and the Company's continuing expansion in the US South, including the acquisition of Elliott Sawmilling Co., LLC ("Elliott"). For the 2019 year, the Company reported an operating loss of $294.3 million and a net loss of $2.10 per share, in sharp contrast to operating income of $608.6 million and net income of $2.78 per share reported for the year ended December 31, 2018.