Canfor Posts Positive 4th Quarter
Prince George, B.C. – Canfor is reporting positive results for the 4th quarter of 2015 with an operating income of $35 million during the last three months of the year.That’s up $7.1 million from the previous quarter. The increase due in part to the low Canadian dollar and improved lumber productivity.
In the report to investor’s Canfor says lumber demand in North America “remained relatively stable during the fourth quarter of 2015, with builders capitalizing on mild weather in many parts of the US and Canada.” The report indicates US housing starts were down 2% from the previous quarter, and that Canadian housing starts reflected “a modest seasonal slowdown, declining 7%”.
Canfor reports a slight improvement in the lumber market in China, and solid demand from the markets in Japan and Korea.
On the pulp side of operations, Canfor reports sales were down “only slightly from the third quarter of 2015 as the continued weakening of the Canadian dollar mitigated the impact of lower prices.”
As for the year ahead Canfor says it expects to benefit from the low Canadian dollar and the recent purchases of mills in the southern US. The company says it expects the demand for lumber in North America to improve ” with steady demand in both residential construction and the repair and remodeling sectors.”