Canfor's CEO Promises Better Performance

Monday, October 31, 2005 09:25 AM

“The 4th Quarter will be better.”

That’s the prediction from Canfor President and CEO Jim Shepherd.

Shepherd made the comments during a live conference call dealing with the “why” behind the dismal 3rd quarter results.

Canfor’s 3rd quarter net income was $17.4 million, year to date was $108.3 million. That compares to $25.3 million in the previous quarter and $200 million in the third quarter of 2004.

“We will make progress, we will make our mills more competitive” says Sheppard “A lot of good work has gone on at Canfor, and we will work towards lowering costs and improving productivity.”

Sheppard addressed several other issues:

Softwood Lumber Dispute - “There was a decision that was supposed to have been delivered Friday, it was delayed and we are not sure what that says about the matter. Let me say this, the politics of the softwood lumber dispute override the mechanics… politics and the whole issue of NAFTA and the trade relationship we have is the core of the issue.”
Canfor paid 47 million dollars in duties to the U.S. in the 3rd quarter alone.

Stumpage increases – Shepherd says he is encouraged that the government is working with industry on its plan to increase stumpage rates. The changes are expected to be in place April 1st of the new year. Shepherd expects stumpage to be raised in the central interior, but reduced in non-beetle areas. “My concern is that the government will go too far too fast, and companies may decide not to handle beetle wood.”

Growth: Canfor has set aside $300 - $350 Million dollars a year for the next three years in capital expenses to improve existing facilities, but with an open mind for possible purchase of new facilities.

Purchase of International Paper: “We will kick the tires” says Shepherd. “Certainly we have to ask the question of growth where next? But we will have to take a look at the possibility of this being a serious acquisition for Canfor, but certainly we will kick the tires.”

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Posted on Monday, October 31, 2005 09:25 AM in News by 250 News

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Comments

Posted by: Don Mackenzie on October 31 2005 9:37 AM

OF COURSE THE BC taxpayer just gave them $62,000,000,00 2 or 3 days ago.IS CANFOR SLEEPING WITH THE BC LIBERALS

Posted by: Opatcho on October 31 2005 9:54 AM

Canfor Sleeping with the liberals, is this a question or an answere Don.
Those share holders need all the help they can get. Greed is a very bad illness that only more money can cure?

Posted by: Don Mackenzie on October 31 2005 10:11 AM

QUESTION !!!

Posted by: pgpercy on October 31 2005 1:57 PM

The 62 million reflects the land take back under bill 28. The Liberals appropriated a percentage of all lumber companies -operating under a forest licence - annual allowable cut so that it could be more accessible to the smaller operators in the province. The amounts paid to the lumber companies reflect the value of the wood that was taken away. The profile that was appropriated was not just pine.
The value of the appropriated wood will be recovered through stumpage to the Crown and job opportunities that it opens up for the smaller operators in the province. The accessibility of the wood for the smaller operators is subject for another debate.

Posted by: pgpercy on October 31 2005 1:59 PM

Canfor would not have been happy to have their annual allowable cut reduced in lieu of the governments interpretation of fair remuneration for the loss of the fibre.