Strong lumber prices boost Canfor Q1 profits 25 per cent despite pulp losses

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VANCOUVER — Canfor Corp. is reporting a 25 per cent increase in net profits in its latest quarter on near record high North American lumber prices that also boosted revenues.

The Vancouver-based company said it earned $534 million of $4.29 per diluted share in the first quarter, up from $427.8 million or $3.42 per share a year earlier.

Adjusted profits were $529 million or $4.25 per share, compared with $434.2 million or $3.42 per share in the first quarter of fiscal 2021.

Revenues for the three months ended March 31 were $2.2 billion, up 14 per cent from $1.9 billion in the prior year quarter.

Canfor was expected to earn net income of $584.2 million on $2 billion of revenues, according to financial data firm Refinitiv.

The company says North American lumber market conditions remained very strong for much of the quarter led by continued strength in new home construction along with tight supply stemming from supply chain disruptions.

"We are very pleased to see the sustained strength in global lumber markets continuing into 2022 and while our pulp business continued to face challenges, we also saw improved results (from the fourth quarter)," stated CEO Don Kayne.

Canfor Pulp Products Inc. lost $19.9 million on $219.7 million in sales due to ongoing transportation challenges and pulp supply disruptions. That compared with a net loss of $101.1 million on $249.3 million of revenues in the fourth quarter and profit of $8.4 million on $262.4 million of revenues in the first quarter of fiscal 2021.

This report by The Canadian Press was first published May 3, 2022.

Companies in this story: (TSX:CFP, TSX:CFX)

The Canadian Press

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