International Forest Products (Interfor) has reported third-quarter net profits of C$1.5m due to the restarting of the Castlegar sawmill and higher sales to China.
President and CEO Duncan Davies said the improved Chinese business had helped to offset the impact of lower prices in North America during the quarter. The Castlegar mill, which resumed operations in early July, has had changes to its operating configuration which have contributed to a marked improvement in the mill’s cost structure.
Third-quarter sales totalled 277 million board feet, an increase of 7 million board feet versus the second quarter.
SPF 2X4 prices averaged C$223, down C$44 versus the second quarter and hem-fir studs were down C$79 to C$213. Cedar prices were mixed with downward pressure on a number of high-value product lines. Prices for the company’s key Japanese product lines were stable or up slightly from second-quarter levels.
Lumber production fell slightly to 272 million board feet in the third quarter, representing approximately 68% of rated capacity.
