Canfor Pulp Records Modest Increase in 1st Quarter
Prince George, B.C. – Canfor Pulp has released its first quarter results.
The net income for Canfor Pulp for the first three months of the year was $10.9 million, that is twice the mark for the 4th quarter of 2012, and up from the $10 million recorded in the first quarter in 2012.
The company says the modest increase "primarily reflected modest gains in Northern Bleached Softwood Kraft ("NBSK") pulp sales realizations coupled with a reduction in unit manufacturing costs"
According to Canfor Pulp’s market release, softwood pulp prices improved slowly through the quarter although global softwood pulp shipments and printing and writing demand were "relatively flat" compared to the previous three months.
The release from the company quotes CEO Don Kayne as saying " We are encouraged by continued operating rate improvements at our facilities through the quarter as well as progress made around investments in our energy business." Kayne adds, "We continue to advance our energy business and will be investing in upgrades to support incremental electricity generation that will move our facilities closer to self sufficiency while diversifying the Company’s earnings profile."
Investments include upgrades to two existing turbines and a new precipitator that will be completed in 2013.
Maintenance outages are planned at the Intercontinental and Northwood Pulp Mills during the second quarter of 2013. The Intercontinental outage will result in approximately 6,000 tonnes of reduced production. The Northwood outage will be extended to complete upgrades to the recovery boiler with an estimated 40,000 tonnes of reduced production, of which approximately 15,000 tonnes will fall in the second quarter with the balance in the third quarter.
Comments
I have always loved when a company forecasts to make 20 million and only make 16 million and claim they lost 4 million.. shouldnt the people who did the forecasting be the ones answering why? Instead the company spouting off all doom and gloom.
P Val
You should acquaint yourself with the rules on how a public company announces it’s quarterly and annual profits or losses and how the results are audited by an independent accounting firm.
I happen to have Canfor’s AGM notice and in 2012 they spent $1,067.000.00 in audit tax and financial fees with Pricewaterhousecooper.
The scenario you paint is lunchroom accounting that has no basis in facts.
a little light reading for you:)
http://www.frascanada.ca/item62001.asp
lonesome.. I didnt say Canfor did it .. I was just saying companies have used that math and still do to this day.
P Val, Companies may ‘budget’ that they are projecting to have a certain surplus of revenues over expenditures in some given fiscal period, (just as the government ‘budgets’ its projected revenues and expenditures ~ and may be on target or over or under it), but the operational ‘profit’ they report in business accounting is NOT revenues minus expenditures, but rather Sales minus ‘Expense’. That may sound like the same thing, but there’s quite a difference.
Business profit is always finalised on the Company’s Balance Sheet as an increase in Assets over Liabilities, and this increase will be reflected in the value of the shareholder’s Equity as recorded in its Capital Account.
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