Prince George, BC – An improved US housing market, combined with strong demand from offshore markets, resulted in one of the strongest price rallies in recent years for lumber markets in the 4th quarter of 2012.

Accordingly, Canfor Corporation is reporting an adjusted shareholder net income of $22.8-million dollars, or $0.16 per share, for the end of the year, up 5-cents-per-share from third quarter adjusted earnings of $15.3-million dollars and a net loss of $32.1-million dollars ($0.22/share) for the final quarter of 2011.

The company has ended the year with an adjusted net income of $26.9-million dollars ($0.18/share), in contrast to last year’s net loss of $31.7-million dollars last year.

Company officials says lumber prices continued to build off a positive trend that started earlier in the year, with the US housing market continuing to strengthen through the 4th quarter – housing starts averaged 898-thousand units, up 16-percent from the previous quarter and the highest monthly starts since mid-2008.

CEO Don Kayne says the company is continuing its focus on making high-return strategic capital investments, as highlighted by recently announced upgrades at its Mackenzie and Elko operations.  "These two projects, along with the start-up of our upgraded Radium mill early in the fourth quarter, demonstrates our ongoing commitment to expand our capacity to provide high quality products to our customers."

He adds that, "After last quarter’s challenges at Canfor Pulp facilities, it was encouraging to see solid improvements in productivity, as well as some improvement in market conditions this quarter."