Prince George, B.C. – Canfor reported net income of $61.9 million for the first quarter of 2013, compared to $21.3 million, for the fourth quarter of 2012 and a net loss of $18.0 million for the first quarter of 2012.

 

In a release issued this afternoon, Canfor says the improved results reflect the strengthening U.S> housing market and improved operating performance at its lumber and pulp mills.

 

Sales in the quarter were $786.3 million, up from the $700.3 million in the 4^th quarter of 2012, and the $593.8 million in the first quarter of 2012.

 

Canfor is expressing optimism saying lumber markets  are improving largely because of the recovering U.S. housing market. “U.S. housing activity reached the highest levels in over five years” says the release, “with total U.S. housing starts averaging 969,000 units SAAR (seasonally adjusted annual rate), up 7% from the previous quarter. U.S. housing starts ended the quarter at 1,036,000 units SAAR in March, the highest monthly starts since mid-2008. Offshore demand remained strong through the quarter.”

 

Prices for lumber ended the quarter at a level not seen since early 2005. Prices on shipments to China are also up.

 

Other positive factors include no export tax on   shipments to the US and the dip   in the value of the Canadian dollar.

 

Lumber production was up 8% from the previous quarter largely because the Radium mill was up and running for the full three months. The company also cites improved productivity.

 

Canfor’s President and CEO, Don Kayne, says the company is “encouraged by the stronger lumber markets and steady improvement in the U.S. housing market. Global pulp markets improved slightly as we saw some modest upward movement in prices ahead of the seasonally stronger spring period.” He says Canfor’s lumber and pulp mills saw increased productivity over the quarter as he says the company is “seeing positive results from the significant capital improvements we have made in the last few years.”

 

Canfor is forecasting for increased lumber demand in the U.S. through the balance of this year, while the Canadian markets are “expected to remain relatively slow due to tempered housing activity” .  Canfor expects offshore markets to see some growth in demand.

 

The forecast is not as bright for the pulp markets. It is expected that sector will remain “challenging” through the 2^nd quarter of this year.