Prince George, B.C. – After recording record sales in 2010, Canfor Pulp Limited Partnership finished short of that billion dollar mark in 2011, with reported sales of $941-million.  Lower pulp market prices and an extended outage at Northwood Pulpmill for capital upgrades affected the bottom line.

The Partnership generated income of $138.6-million dollars in 2011; earnings before interest, taxes, depreciation and amortization(EBITDA) of $218.2-million; and distributable cash of $131.6-million, or $1.85 per unit.  Distributable cash in 2010 was $207.1-million or $2.91 per unit. 

In addition, 2011 fourth quarter sales figures were well back of the third quarter, at $212.7-million dollars compared to $234-million for the quarter that ended in September.  Historical slow demand in the summer, saw global softwood pulp markets weaken through the second half of 2011 and CPLP officials say demand is projected to remain soft through the first quarter of 2012.

Capital expenditures for the year totalled $139-million dollars, of which $56-million dollars was funded by the Partnership, while the remainder came from government programs. 

CPLP received approval to proceed with four projects under the Green Transformation Program.  Three projects were completed last year, including the Northwood recovery boiler and precipitator upgrade which began in the third quarter and extended into the fourth, reducing production by more than 65-thousand tonnes.  The final project, which is to be partially funded by the program is to upgrade the feedwater system at the Prince George Pulp and Paper Mill and is projected to be completed by the third quarter of this year.