Falling prices for wood products, the continued strength of the Canadian dollar and beetle infestations throughout central British Columbia contributed to weaker financial results.
“2006 was an important year for Canfor, with several key accomplishments, but also a year of difficult market conditions and operating challenges,” said Canfor president and CEO Jim Shepherd.
Sales in 2006 were C$3.8bn with EBITDA of C$817.1m, although the company received C$815.4m in duty refunds and interest.
Mr Shepherd said the company was continuing to focus on the growth of its wood products business, with the acquisition of the New South group of companies.
“We expect markets to continue to be difficult through 2007,” said Mr Shepherd, “but our efforts are focused on reducing costs and improving productivity and efficiency.
“Another challenge in 2007 will be to deal with the impact of the mountain pine beetle. Significant effort is going into understanding the beetle and its impacts for our company.”
