Vancouver-based Canfor Corporation reported a total net income of C$40.4m for the second quarter of 2010, compared to C$32.5m a year ago.
For the six-month period ending June 30, 2010, the company’s net income was C$72.9m, compared to a loss of C$57.8m for the comparable period in 2009.
Shipments of lumber for the second quarter totalled 835 million board feet, up 10% from the previous quarter, with prices for most grades continuing to climb into the second quarter. Canfor continues to operate at two-thirds capacity.
The high prices resulted in export tax rates on British Columbia lumber shipments to the US declining to zero.
But prices dropped off significantly for the average SPG 2×4 in the latter half of the second quarter.
Demand is expected to improve slightly as the autumn building season gets under way in August and September, though Canfor says foreclosures and continued weak US employment will hinder the US housing recovery.
