Prince George, B.C.- Canfor is reporting  a net loss of $17.0 million for the fourth quarter of 2009, compared to a net loss of $5.2 million for the third quarter of 2009 and a net loss of $229.8 million for the fourth quarter of 2008.

 

For the year ended December 31, 2009, the Company’s net loss was $70.5 million, compared to a net loss of $345.2 million reported for 2008.

 

In a release issued this afternoon, the company says  U.S. housing activity showed no improvement through the last quarter of 2009, with U.S. housing starts remaining at historically very low levels.

Prices for several Western Spruce/Pine/Fir (“SPF”) lumber products, including 2x4 grades,edged up through the quarter, mostly as a result of further market curtailments.

 

On a more positive note, pulp prices continued to climb in the fourth quarter, in response to continued low global inventory levels and a steady improvement in demand. For all Canadian operations, pricing gains were offset to

some extent by the Canadian dollar which drew closer to par with the US dollar through the quarter.

 

Commenting on the results, Canfor’s President and Chief Executive Officer Jim Shepard said, “Despite improved pulp markets and further progress in cost reduction efforts, the depressed U.S. housing sector continued to weigh heavily

on the financial performance of our core lumber business.”

 

In addition to the existing indefinite shuts of its Radium, Rustad, Vavenby and Chetwynd lumber operations, Canfor  took market-related downtime over the Christmas period at most of its other lumber operations,

and in mid-January, curtailed its Quesnel sawmill as a result of weak market demand and the current economics of running that operation.

 

On a more positive note, Canfor announced the restart of its Chetwynd sawmill in the spring of 2010, after a 2-year closure. “This welcome news in these challenging times has been made possible through the full

cooperation of our employees and other stakeholders,” said Shepard.

 

“Another positive factor is the Company’s focused attention to the markets of China and South-East Asia and we are pleased with our progress in directing more shipments offshore,” added Shepard.

 

“While we are cautiously optimistic that the worst of the downturn is now behind us, the road ahead will not be without its challenges,” said Shepard. He added that the company would be managing production levels accordingly.