Prince George, B.C. – Canfor Pulp Products Inc. has announced its first quarter 2012 results.

 

For the quarter, the Company reported net income of $10.3 million and EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) of $28.8 million on sales of $220.0 million. Results were impacted by lower market pulp prices and a strengthening Canadian dollar. The decline in pulp prices was partially offset by lower unit manufacturing costs and strong shipments of the Company’s pulp and paper products.   The figures compare to net income of $38.5 million on sales of $212.7 million in the fourth quarter of 2011.

The Northwood Pulp Mill production exceeded expectations setting an average daily production record for the quarter. There were no maintenance outages in the first quarter of 2012. Maintenance outages are planned for the second quarter of 2012 at the Intercontinental Pulp Mill and Prince George Pulp and Paper Mills.

Pulp segment income of $12.2 million in the three months ended March 31, 2012 represented a decrease of $39.3 million from the corresponding period of 2011. The decline was due primarily to lower NBSK (Northern Bleached Softwood Kraft) pulp prices and higher unit manufacturing costs.

Global softwood pulp markets have strengthened as we approach the spring maintenance period. Global producer inventory levels decreased to 31 days of supply during the quarter as compared to 36 days of supply at the end of December 2011. NBSK  pulp list prices increased US$25 in Europe to US$850 and increased US$20 in China to US$710 during the quarter. However, North American prices settled at US$870 for the quarter after declining US$20 in January.

The global softwood pulp market is projected to improve modestly through the second quarter. For the month of April, the Company has announced NBSK pulp list price increases of US$30 in North America to US$900, US$20 in Europe to US$870, and US$30 in China to US$740.