Big Q4 for Canfor despite production and shipping drop-off

Canfor, the Vancouver, British Columbia based lumber producer, reported fourth quarter 2017 net sales of 1.18 billion Canadian dollars (US$930 million) – a 13% increase from 2016 net sales of C$1.04 billion (US$820 million) in the fourth quarter 2016.

For the year, Canfor reported net sales of C$4.7 billion (US$3.7 billion), nearly a 12% increase from net sales of C$4.2 billion (US$3.3 billion).

Canfor also reported a fourth quarter net income of C$131.8 million (US$103.8 million), nearly a 250% increase from a fourth quarter 2016 net income of C$38 million (US$30 million). For the full year, Canfor reported a net income of C$345.4 million (US$272.2 million), more than doubling a net income of C$150.9 million (US$118 million) in 2016.

Total lumber shipments, at 1.24 billion board feet, were 9% lower than the previous quarter reflecting lower productivity, capital related downtime in the U.S. South, increased statutory holidays, and weather-related transportation challenges in Western Canada, which placed constraints on railcar and truck availability. Total lumber production, at 1.24 billion board feet, was down 5% from the previous quarter reflecting fewer operating hours as a result of the same factors.

“Despite the many operational challenges presented by weather, our lumber business had another strong quarter, driven by steadily improving demand and prices for our products,” said Don Kayne, president and CEO of Canfor.