Canfor reports 1Q operating loss of $88.8 million

For the 1Q 2020, Canfor Corporation reported an operating loss of $88.8 million, $29.2 million higher than the operating loss of $59.6 million reported for the 4Q 2019. The significant decline reflected materially lower operating earnings in the lumber segment, partially offset by improved operating earnings in the pulp and paper segment.

Canfor reports 1Q 2020 sales of $1.17 billion, compared to $1.15 billion in 1Q 2019.

Canfor’s President and CEO, Don Kayne, said, “In this time of significant uncertainty due to the COVID-19 pandemic, our top priorities continue to be ensuring the health and safety of our employees and implementing the necessary measures to safeguard the business. While we saw a modest improvement in our results at our lumber and pulp and paper operations in the first quarter, these results were significantly overshadowed by the virus outbreak and the extreme market volatility and major economic turmoil it has caused. We are focused on maintaining a strong balance sheet and believe we are well-positioned to weather the impacts of the pandemic. We continue to actively assess the ongoing situation and remain prepared to take further action if necessary.”

Canfor is a leading integrated forest products company based in Vancouver, British Columbia (“BC”) with interests in BC, Alberta, North and South Carolina, Alabama, Georgia, Mississippi and Arkansas, as well as in Sweden with its recent majority acquisition of the Vida Group. Canfor produces primarily softwood lumber and also owns a 54.8% interest in Canfor Pulp Products Inc., which is one of the largest global producers of market Northern Bleached Softwood Kraft Pulp and a leading producer of high performance kraft paper.