Although Connifex Timber’s earnings have increased, tariffs force the company to set millions aside

In the second quarter of 2017, Conifex Timber posted a record result of CAD$116.4 million (US$93.31 million) in sales, and CAD$14.8 million (US$11.86 million) in profits, which are 39 per cent more than the amounts in the same period in 2016. However, according to Woodworking Network, these numbers exclude the CAD$4.6 million (US$3.69 million) the company has put aside for the punishing tariffs the United States (U.S.) has put on the softwood lumber imports from Canada.

For the second quarter of 2017, lumber production was estimated at 132 million board feet (BDFT), and the price experienced a two per cent increase over the previous quarter and 18 per cent over the same quarter in 2016 mainly due to the higher market based stumpage and purchased log costs.

“We expect continued uncertainty around the softwood lumber dispute, including the suspension of preliminary CVD in September 2017, and timing related to the final determination of the CVD and antidumping duty rates and the potential resolution of the dispute, will contribute to further volatility in U.S. market conditions and pricing,”  Conifex stated in its press release. “We expect our mill net price realisations from the sale of construction grade lumber to the Canadian market will be somewhat discounted as a result of the duty impositions on U.S. exports.”

 

Source: Woodworking Network, Conifex Timber