July 25, 2019 - Vancouver, B.C. - Canfor Corporation (TSX: CFP) today reported its second quarter of 2019 results:
- Second quarter of 2019 reported operating loss of $50 million
- Operating loss of $5 million after adjusting for duties, restructuring costs and reversal of inventory provision
- Adjusted shareholder net loss of $12 million, or $0.10 per share
- Completed first phase purchase of 49% of Elliott Sawmilling Co., LLC (“Elliott”)
The following table summarizes selected financial information for the Company for the comparative periods:
For the second quarter of 2019, the Company reported an operating loss of $49.7 million, an improvement of $20.2 million from the operating loss of $69.9 million reported for the first quarter of 2019. The improvement reflected higher lumber segment earnings that included a full quarter of the Vida Group of Sweden’s (
Vida” or “European SPF lumber operations”) results following completion of the acquisition in the first quarter of 2019. Pulp and paper segment earnings were similar to the previous quarter after taking account of inventory write-downs.
Reported results for the second quarter of 2019 included a net duty expense of $45.2 million, at a combined countervailing duty (“CVD”) and anti-dumping duty (“ADD”) accrual rate of 26.24%, compared to $36.3 million reported in the first quarter of 2019 at the same cumulative combined rate. Reported results in the second quarter of 2019 also included a $25.0 million recovery in the lumber and log inventory write-down provision, partly offset by a $13.4 million finished pulp and raw material inventory write-down. Reflecting the decision to permanently close the Company’s Vavenby sawmill in British Columbia (“BC”), reported results in the second quarter included estimated restructuring costs of $11.5 million. After adjusting for the aforementioned items, the Company’s operating loss was $4.6 million for the second quarter of 2019, down $9.6 million from similarly adjusted operating income in the first quarter of 2019, with weaker lumber segment results more than offsetting improved results for the pulp and paper segment.