Prince George, B.C.- Canfor Pulp is reporting a net loss for the third quarter of $4.6 million. That compares to a net income of $23.9 million for the third quarter of 2011.

 

For the nine months ended September 30, 2012, Canfor Pulp’s net income was $9.0 million,  compared to $122.8 million, for the same period in 2011.

 

The company points to lower pulp sales, reduced shipments, restructuring costs and the one time costs associated with the new five year contract worked out with it’s employees as contributing factors to the loss. The new contract meant the company had to dish out $3.2 million in one time, lump sum payments during the quarter.

 

The extended scheduled maintenance and capital upgrades at the P.G. Pulp Mill  had an impact on the reduced shipments. During the downtime, the replacement of the recovery boiler lower furnace and upgrades to the boiler feedwater treatment system were  completed.

Higher production at the Northwood Pulp Mill partially offset the impact of the P.G. Pulp Mill shutdown however, it took longer than expected  to ramp up both mills following the scheduled and unscheduled shut downs.

 

Canfor Pulp’s CEO, Don Kayne says the quarter was tough “ we faced challenges presented by weaker markets and came out of an extended period of major maintenance and capital upgrades. The focus now is on getting our recently upgraded pulp mills up to targeted operating rates."

 

The Northwood Pulp Mill is scheduled for a maintenance outage in the 4^th quarter, and that will reduce market pulp production by about 6,000 tonnes during that quarter.