VANCOUVER, BC, Oct. 22, 2020 - Canfor Pulp Products Inc. ("The Company" or "CPPI") (TSX: CFX) today reported its third quarter 2020 results:
Overview
- Third quarter of 2020 reported operating loss of $28 million; net loss of $18 million, or $0.28 per share
- Strong balance sheet maintained, net debt to capitalization of 3.4% at September 30, 2020
Financial Results
The following table summarizes selected financial information for CPPI for the comparative periods:
The Company reported an operating loss of $27.6 million for the third quarter of 2020, compared to an operating loss of $6.3 million reported for the second quarter of 2020. After adjusting for a $3.0 million recovery in its inventory write-down provision, the Company's operating loss was $30.6 million for the third quarter of 2020, $32.5 million unfavourable compared to similarly adjusted results for the second quarter of 2020.
The Company's operating results for the third quarter of 2020 reflected weak global pulp market conditions as well as significant fibre-related and previously deferred scheduled maintenance downtime, stemming from the ongoing impact of the coronavirus ("COVID-19") outbreak, combined with a 3 cent, or 4%, stronger Canadian dollar. The significant effect of COVID-19 on lumber sawmill operating rates in the British Columbia ("BC") Interior in the previous quarter materially impacted residual fibre supply to the Company's Prince George ("PG") based operations heading into the current quarter, resulting in a four-week curtailment at the Company's Intercontinental Northern Bleached Softwood Kraft ("NBSK") pulp mill and PG NBSK pulp and paper mill in July.
Source: Canfor Pulp
