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October 28, 2017 4:34 am

Canfor First Quarter Results Released

Wednesday, April 29, 2015 @ 2:53 PM

Prince George B.C.- Canfor is reporting a shareholder net income of $29.3 million dollars for the first quarter of 2015. That is down from the $29.9 million recorded in the fourth quarter of 2014, and significantly lower than the $45.5 million recorded in the first quarter of 2014.

Canfor says the lumber segment saw increased operating income primarily because of the company’s recent purchase of mills in the Southern US and what it calls a “modest increase” in lumber sales.

There was also an increase in the operating income for the pulp and paper segment, largely due to the weak Canadian dollar.

Canfor notes the harsh winter across Eastern North America had an effect on housing starts. Housing starts in Eastern Canada were down 5% and dropped 9% in the U.S. compared to the 4th quarter.

The company says it expects “A modest improvement for the North American (lumber) market” towards the middle of the year when the U.S. housing market picks up steam


Aw, c’mon. Where are all the clueless twits that spoke up about spending million on the Winter Games, but haven’t a word to say about Canfor, and what their earnings actually mean for the community? Where have all you gone? Back in the Tim Horton’s lineup, loading up on trans-fats?

Can’t form an opinion without an agenda driven task force, telling you what’s good for the community?

Not one comment? Typical.

No comments yet due to everyone working 12 hour shifts to supply shareholders with 29.3 million dollars. Wait until they get home from work!

Actually Dumbfounded, I think that everyone working a 12 hour shift is probably doing so in order to pay their mortgages, their bills and all other costs related to surviving in our modern day society!

The people that I know that work 12 hour shifts at Canfor seem to be able to survive quiet well. If Canfor makes a profit, then these workers should have some job security! Better that Canfor make a profit and keep everyone employed than to lose money and lay everybody off.

As far as shareholder net income is concerned, I am fairly confident that most Canfor employees and many of the rest of us also benefit from Canfor’s profitability by virtue of the holding in our RRSP’s and Pension Plans!

Why is unacceptable to be profitable? We should all aspire to “success” rather than welfare!

Dumbfounded, get off your arse and go buy some Canfor shares, if you don’t already own them in your RRSP or Pension Plan!

Well said Hart Guy.. Only thing I don’t like about Canfor shares is no dividend.. Canfor pulp shares are looking pretty good for growth and the dividend is slowly coming back up.. Recent buy back as well.. Think I may load up again on this one..

Hart Guy get off your arse and buy a sense of humour!

Okay.. Why should a company like canfor get so much cash and tax breaks from our government to assist them? Tens of millions to ease canfors cost of installing turbine generators.. But raise Hydro costs to the public ? Canfor does contribute many jobs to our area and those employess shop here.. But shoukd the tax payers also help them increase their profits while the tax payers pay more ?

PVal, note what Canfor is doing with its profits made in BC? Buying sawmills in the U.S. Using stumpage minimization techniques, cutting contractor rates, and exporting the profits to buy assets elsewhere. Anyone bet how long it will take Canfor to “rationalize” more Canadian sawmills and wean themselves off BC? Good community partner they are.

PVal, it comes down to a question of global competitiveness. Which *should*, if we lived in a perfect world, mean that Canfor would be able to compete with other companies like it elsewhere in the world and succeed or fail simply on its own merits. Unfortunately, that’s not the way the game is played. Other countries have various ways in which industries similar to Canfor are publicly ‘subsidised’ through the governments of those countries affording nationally registered companies in their domains various forms of advantages that tend to tilt the global playing field in their favor. They do this because, like us, their great God is “employment”. And also because it is incumbent on EVERY country to try to do what is really impossible for all to do ~ have a so-called ‘favorable’ balance of trade. Where every country exports more than it imports, and receives some other country’s ‘money’ for the difference. This way those countries feel they are getting ‘rich’, because that’s the way the set-up works ‘financially’. When, in actual fact, they are really sending out of their land more real wealth than they’re bringing back to it, and are ‘physically’ getting ‘poorer’ as a result.

Why should Canfor invest in BC if there’s not only going to be less and less to cut here, but also no certainty that the export markets they’ve traditionally had in the USA will continue to buy lumber from Canada? There’s really far less likelihood of future countervailing duties being called for by the larger independent US southeastern and western lumber mills if a good chunk of that industry is owned by Canadian companies. Also, same as when foreign companies buy assets in Canada, someone that owned those mills in the USA must have wanted to sell, or Canfor, West Fraser, Interfor, and others came looking to buy. Maybe the previous owners just don’t see the long term prospects for their businesses being as bright under their continued ownership as Canfor feels they’ll be under its.

Dumbfounded, any time that I need a chuckle, I just think of you and your comments :-) !!

Dumbfounded, I haven’t had the opportunity to check yet but perhaps you might know what the 29.3 million of net shareholders net income represents as an ROI?

Or, taking that net income as a percentage of sales whether it’s increasing or decreasing. Many firms report their profit reported in dollars is larger than it was the year before, but their margin of profit taken as a percentage of their sales is actually falling. They have to keep ‘growing’ to report any profit at all, and eventually they ‘grow’ themselves to the point where they’re simply no longer sustainable.

This seemingly overlooked factor has led to the demise of many of the former forest industry, (and other industrial), giants ~ the history of the now defunct MacMillan Bloedel and its predecessor companies illustrates it quite well.

don’t rely on just canfor for retirement investments.. If they go under so do you. Likely hood slim..but that’s what all of the USA thought too and now tens millions are still trying to recover from the crash.

Canfor actually has old fashioned assets that have value unlike some of the bubble companies.

Mac Blo stock did not die and leave people penniless, when you have assets a rival company comes in and buys the stock to take control of the assets. Does not mean shareholders go broke, just usually means people on the ground lose their jobs.

Companies like Rustads, Northwood and Apollo get bought out – owners walk away with the money unlike public traded companies where the shareholders walk away with the cash, or shares in the new company and the “owners” go home out of a job – but usually these owners have enough stock they can sell and retire on.

Side note – did I just see Shari Green on the news?

Canfor’s 2014 financial report showed a Net Income Attributable to Equity Shareholders of the Company of $175.2 million on Sales of $3.348 billion or approximately 5.2%.

Canfor’s book equity – i.e., what the original shareholders have in the company is 1.6 billion, so a 29 million quarterly profit is about a 7% return on investment – actually not that bad in these days of low interest rates.

It’s market capitalization, is about 3.2 billion, but that’s based on it’s trading price, so for current shareholders, they’re getting 3.5% roughly. Not that great considering the risk.

Socredible made a comment I think a lot of us just glossed over. A trade surplus means we ship out more “real” goods, than we take back in trade, so the country buying our “real” goods, gives us their “money” for the difference. But unless some day comes along, where we take that money, and buy real goods from them, we essentially gave them away. We actually at some point need to have a trade deficit to ever be paid back in real goods.

More and more I think we live in a massive ponzi scheme.

Canfor – the company with the antique accounting systems.

The Accounts Payable department has not realized that the year begins with 20 not with 18.

Bills to Canfor, have to be mailed by Canada Post and they only pay by paper cheques sent out by Canada Post.

All the complaints they have made over the years about losing money and they still hold onto this antique system.

They were one of the first companies to change over to paying employees by EFT into the bank accounts.
Yet they refuse to pay vendors with anything except paper cheques.

Someone needs to come out of the closet and into the light of day.

Just IMO

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