Canfor President Cautious About Future
By 250 News
Friday, July 31, 2009 08:51 AM
Prince George, BC.- Although Canfor recorded a profit of $10.5 million dollars in the second quarter Canfor President and CEO Jim Shepard is not expressing optimism that the troubles facing the lumber industry are over “I wish I could say this is an operating profit, but I can’t. What we have is an accounting profit.”
During the second quarter conference call this morning, Shepard told investors that despite the Bank of Canada’s declaration that the recession is over, he believes there is still an uncertain road ahead “We are operating at 50% of lumber capacity, this statistic alone should be a good indication of where the market stands.”
Shepard says the adjustable rate mortgages in the U.S. are about to come due, and he is concerned that will further intensify the economic storm. He offered praise to all employees, contractors and suppliers for their willingness to help reduce costs. He also offered praise for all in Mackenzie who worked to bring back one shift at the mill there, and to the Clear Lake sawmill employees for their voluntary wage cuts “These are people who are intimately aware of the hardships and wanted to be part of the solution.”
“I am not a fan of making predictions. As Warren Buffet recently stated, the economic turn around is coming, he just doesn’t know when. If Warren Buffet doesn’t know, then I sure don’t. Therefore, Canfor will continue with its focus on cash conservation and cost reduction opportunities. But we can take heart in the fact that our company has become very lean and efficient through the committed effort of all of our employees.”
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Posted by: lmorge on July 31 2009 5:51 PM