Canfor Boss Optimistic
By 250 News
Friday, February 20, 2009 08:15 AM
Prince George, B.C.- In the wake of recording a net loss of $230 million dollars in the fourth quarter of 2008, Canfor President and CEO Jim Shepard has expressed some optimism “ I am not making light of the loss, anything but, it is a significant amount. Despite that, I am optimistic about the future, Canfor is well positioned with cash reserves and long term customers. By focusing on what we can control, we will come out of this downturn stronger.”
Speaking on a conference call this morning, Shepard says Canfor will continue to make the necessary changes to control costs “When everything around you is going south, you can either focus on what’s going on around you, or, as Canfor has done, focus on those things you can control.” Those things which Canfor can control include production curtailments and the closure of operations. Shepard made it clear the company will make those difficult decisions if necessary.
The company will continue to monitor the market week to week and make some adjustments to ensure supply does not outstrip demand. “I wish I could be optimistic and say I see an end to this downturn, unfortunately that would be anything but true.” Canfor says Shepard has been making adjustments for some time now and has shown it has the strength and flexibility to make those adjustments “We are writing our own story and not waiting for the markets.”
Canfor is running at about 70% of capacity. It has $137 million dollars US in debt that will come due in March and April. The debt will be paid through cash reserves.
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