Prince George, B.C.- Canfor is reporting a third quarter net income of $22.2 million. That is up from the $4.5 million reported in the 2^nd quarter, and a complete turnaround from the net loss of $21.6 million recorded in the third quarter of 2011.

 

For the nine months ended September 30, 2012, the net income was $10.5 million, compared to net loss of $12.5 million, for the same period last year.

 

The company points to improved lumber markets as the U.S. housing market continues to improve and solid demand from China and Japan.

 

Canfor’s President and CEO, Don Kayne, said, "The improvement in lumber sales realizations reflected a steady increase in construction activity in North America and continued solid offshore demand for Western SPF lumber products"  says Canfor President and CEO Don Kayne.   He adds that Canfor has now fully integrated its recently acquired operations in the south-east Kootenay region "The start-up of our upgraded Radium mill early in the fourth quarter of 2012 will further boost our capacity to provide high quality products to our valued customers."

 

Regarding the pulp and paper segment’s third quarter results released yesterday (click here for previous story),  Kayne said, "It was a tough quarter as our pulp business faced challenges presented by weaker markets and the Canfor Pulp facilities came out of an extended period of major maintenance and capital upgrades. The focus now is on getting these recently upgraded pulp mills achieving targeted operating rates."  The Canfor Pulp  results  showed a net loss in the 3rd quarter of $4.6 million.

Canfor predicts   the U.S. demand for lumber is projected to slow in the fourth quarter of 2012 with traditionally lower seasonal homebuilding activity. The Canadian housing market is also forecast to slow with demand projected to level off towards the end of the year. Exports of lumber to China, Japan and Korea are anticipated to offset any slowdown in North American shipments.