Canfor Corp has announced a second-quarter net loss of C$38.8m, down from first quarter losses of C$42.7m but a complete turnaround from C$39.2m net income recorded in the same period of 2006.
Looking at the lumber and panel products markets, the two sectors that most influence the Canadian firm, Canfor said that subdued lumber prices, a continued decline in housing starts in the US and Japan and the impact of export rates to America have all had an impact on its second-quarter results.
This is compared to the second quarter of 2006, when several one-off events, including corporate income tax reductions and a foreign exchange gain on long-term debts, allowed the company to record more favourable results.
However, despite the poor figures for the second quarter, president and chief executive officer James Shepard said that the company was implementing policies to “take advantage of growth opportunities”.
“Much has been accomplished to date to lower costs through improved operating performance, reduced spending and payroll cost reductions,” said Mr Shepard. “As we continue these efforts to streamline our cost structure, we will meet our customers’ needs for high quality wood products delivered through an efficient supply chain.”
Canfor’s lumber operations posted a C$51.2m net loss during the quarter, while its panels arm posted a net loss of C$16.6m. These were coupled with a 12% year-on-year decline in the amount of plywood being produced by the firm, with the switch to a five-day week at the Tackama facility blamed.
