Commenting on the Company's 2022 and fourth quarter of 2022 results, Canfor's President and Chief Executive Officer, Don Kayne, said, "After a strong start to the year, unfavourable global lumber market conditions led to sharp pricing declines and temporary capacity reductions across our Western Canadian sawmills, which also disrupted the supply of fibre to our pulp mills. As a result, our lumber and pulp business both faced significant challenges in the fourth quarter which directly impacted our quarterly results. Early in 2023, we made the difficult but necessary decision to create a more sustainable operating footprint in BC. Our goal is to match mill capacity with the economically available fibre for harvest to enhance our ability to compete and to operate throughout the market cycles. This is what will ultimately create greater stability for our employees and communities, while ensuring we can continue to provide the high quality, low carbon products that are in demand by our customers around the world. We sincerely regret the impact these decisions have on our employees, their families, contractors, and the businesses that support our operations and the local community. We thank our employees for their hard work, resilience, and commitment to safety as we work together to navigate this very challenging environment."
VANCOUVER, BC, Feb. 28, 2023 - Canfor Corporation ("The Company" or "Canfor") (TSX: CFP) today reported its 2022 and fourth quarter of 2022 results1:
- 2022 adjusted operating income of $1.3 billion; adjusted shareholder net income of $880 million, or $7.15 per share
- Q4 2022 adjusted operating loss of $164 million; adjusted shareholder net loss of $127 million or $1.04 per share
- Significant weakness in lumber market demand in Q4 2022 led to a sharp deterioration in lumber pricing late in the year
- Q4 lumber production impacted by the continuation of reduced operating schedules in Western Canada; pulp production impacted by fibre shortages and challenging winter weather conditions
- After year end, announced restructuring of lumber and pulp operations in British Columbia to better align manufacturing capacity with available long-term fibre supply and create a stronger and more sustainable footprint
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