Canfor sales, profits fall in Q4

Canfor reported fourth quarter 2021 sales fell 3% to 1.57 billion Canadian dollars (US$1.24 billion) from sales of C$1.62 billion (US$1.28 billion) in the fourth quarter of 2020.

Sales for the full fiscal year jumped 41% to C$7.68 billion (US$6.07 billion) from 2020 sales of C$5.45 billion (US$4.31 billion).

The Vancouver, British Columbia lumber and pulp producer also reported a net loss of C$23.1 million (US$18.27 million) for the quarter compared to a net income of C$356.6 million (US$282.06 million) for the same period a year ago.

Profits for the full year more than doubled, however, as Canfor posted a net income of C$1.34 billion (US$1.06 billion) in comparison to a net income of C$555.6 (US$439.5 million) in 2020.

During the quarter Canfor completed its acquisition of Millar Western Forest Products Ltd.’s (Millar Western) solid wood operations and associated tenure located in Alberta, Canada, for C$420 million (US$332 million), including an estimated C$56 million (US$44.3 million) in working capital. The move adds 630 million board feet to Canfor’s annual production capacity.

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The Bottom Line: Canfor posts a net loss for the fourth quarter but full year profits surge to C$1.34 billion compared to C$555.6 million in the prior year.

What the CEO said: “2021 was an exceptional year for Canfor,” said Don Kayne, Canfor president and CEO. “Although our business was faced with global supply chain disruptions, the ongoing impacts of the COVID-19 pandemic and extreme weather conditions in BC, we were able to generate record-high results for 2021. We continue to see growing demand for the forest products we produce, together with a greater appreciation of their low carbon benefits.”

Company info: Click here to read Canfor’s full fourth quarter and 2021 financial report.