Canada’s forest products industry is expected to lose C$750m this year, the second consecutive money-losing year, the Conference Board of Canada has warned.
And next year isn’t looking much better, with a slim profit forecast.
The industry has been hit hard by the weak US housing market – traditionally the largest buyer of Canadian softwood lumber – and the stronger Canadian dollar.
The US construction market is expected to pick up in late 2009, but profit margins are still expected to remain low next year.
