Tough Q4 for Canfor
Lumber producer Canfor posted fourth quarter 2018 net sales of 1.03 billion Canadian dollars (US$780 million), down more than 10% from fourth quarter 2017 net sales of C$1.15 billion (US$871 million).
Sales for the year increased 10.5% to C$5.04 billion (US$3.82 billion) from 2017 sales of C$4.56 billion (US$3.46 billion).
Canfor also posted a net loss of C$52.4 million (US$39.7 million) for the quarter compared to net earnings of C$131.8 million (US$100 million). For the year, Canfor reported a net income of C$354.9 million (US$269 million) up nearly 3% from a 2017 net income of C$345.4 million (US$261.8 million).
During the quarter, Canfor curtailed operations at several mills. The Vancouver, British Columbia-based company also reported that North American lumber consumption was down slightly in the fourth quarter of 2018, “in part reflecting waning demand as the quarter progressed.”
Also in the fourth quater, Canfor announced it was acquiring 70% of the VIDA Group of Sweden.
VIDA is Sweden’s largest privately-owned sawmill company, operating 9 mills in southern Sweden with an annual production capacity of 1.1 billion board feet. The deal is worth C$580 million dollars (US$439.6 million).
Sales for the year increased 10.5% to C$5.04 billion (US$3.82 billion) from 2017 sales of C$4.56 billion (US$3.46 billion).
Canfor also posted a net loss of C$52.4 million (US$39.7 million) for the quarter compared to net earnings of C$131.8 million (US$100 million). For the year, Canfor reported a net income of C$354.9 million (US$269 million) up nearly 3% from a 2017 net income of C$345.4 million (US$261.8 million).
During the quarter, Canfor curtailed operations at several mills. The Vancouver, British Columbia-based company also reported that North American lumber consumption was down slightly in the fourth quarter of 2018, “in part reflecting waning demand as the quarter progressed.”
Also in the fourth quater, Canfor announced it was acquiring 70% of the VIDA Group of Sweden.
VIDA is Sweden’s largest privately-owned sawmill company, operating 9 mills in southern Sweden with an annual production capacity of 1.1 billion board feet. The deal is worth C$580 million dollars (US$439.6 million).