Canadian Forest Products Corporation (Canfor) and Slocan Forest Products Ltd, which plan to merge in April, have both reported healthy financial results for 2003.
Canfor reported C$153.3m net profits for the full year, up from just C$11.5m in 2002, while fourth quarter net profits rose to C$34.1m. Slocan’s net earnings rose from C$39.7m in 2002 to C$59.2m last year, with fourth quarter earnings up to C$27.1m from a mere C$60,000 a year ago.
Slocan’s lumber operations incurred a C$5.1m quarterly loss due to the stengthening of the Canadian dollar, the softwood lumber dispute with the US and lower production because of forest fire related log availability and the rebuilding of the Quesnel operation.
But record price levels in the company’s panels business saw the division’s earnings rise to C$38.3m compared with C$7m a year ago.
Canfor’s wood products division had an operating loss of C$4.7m in 2003, compared with C$70.8m profits for 2002. Average 2×4 random length prices went up by 3% last year but this was more than offset by the Canadian dollar’s rise.
