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Canfor Pulp First Quarter Strong

By Submitted Article

Tuesday, April 27, 2010 12:07 PM

Prince George, B.C.- Canfor Pulp Limited Partnership had a strong first quarter.
The Partnership reported sales of $239.5 million and net income of $32.5 million the result of higher prices for pulp and paper products, lower unit manufacturing costs and increased pulp shipments, partially offset by the stronger Canadian dollar.
 
First quarter results were negatively impacted by a shutdown at the Prince George Pulp and Paper Mill, which
reduced pulp production by about 22,000 tonnes. That  amount includes about 4,000 tonnes attributable to advancing the annual maintenance outage originally planned for the second quarter of 2010, which was moved to coincide with unplanned maintenance requiring the shutdown of the mill’s recovery boiler. 
 
Offsetting that production loss was a record quarter at the Northwood Pulp Mill for both total tonnes and average daily rate.
 
Pulp markets remained strong as steady pulp demand coupled with large incremental supply side reductions
maintained world inventories of pulp at very low levels throughout the quarter. The tight markets allowed producers
to implement further price increases in the quarter.
 
The pulp market is expected to remain strong through the second quarter of 2010 as inventories held by producers
and customers are well below what is considered to be a balanced market.
 
Industry downtime is expected to continue to impact the supply/demand balance. Factors impacting industry downtime include reduced production due to planned maintenance downtime in the second quarter of 2010, delays of Chilean mills returning to capacity after the February 27 earthquake, and delayed restarts of idled mills.

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Posted on Tuesday, April 27, 2010 12:07 PM in News by Submitted Article

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Comments

Comment Posted by: pgguru on April 27 2010 12:33 PM
how about firing up rustads for extra hog and pulp
Comment Posted by: mythoughts on April 27 2010 12:50 PM
Winton Global too!
Comment Posted by: leoleo on April 27 2010 1:15 PM
That last thing the industry needs is more production.
Recovery would be stalled in its tracks asap.
Comment Posted by: pgguru on April 27 2010 4:44 PM
mythoughts i thought i heard winton global sawmill was stripped of few or more parts
Comment Posted by: herbster on April 27 2010 4:52 PM
Great news! Does this mean that Canfor will be paying back the taxpayer for the $120 million publicly funded upgrade to its boilers?
Comment Posted by: He spoke on April 27 2010 7:39 PM
herbster, This funding originates from the obama administration did to boost the american mills, thus the mills in canada went to the feds and said what are they going to help out. Thus Ottawa had to include western producers a piece of the pie. Surprising as it may seem, Canfor and West Frasers keep well maintained mills. Unlike its ugly sister to the east of Manitoba, they look for the Federal and Provincial Government to keep their antiquated mills in production. The pulpmills out west produce a 1000 tons a day on the average, back east 300 tons is a big pulpmill.
Comment Posted by: He spoke on April 27 2010 7:40 PM
Thus, I don't mind Canfor and West Fraser getting a piece of the action.
Comment Posted by: Denaljo on April 27 2010 8:02 PM
Wow! That ole sucker fish bit that hook line and sinker!
I have to hand it to the pulp mills though; they did a great pr job on everyone to get that big chunk of uncalled for corporate welfare. Just because the Yanks want to give their money away does not mean we have to also.Not one Canadian mill was in jeopardy over the US tax loophole.
Comment Posted by: leoleo on April 27 2010 9:06 PM
"The pulpmills out west produce a 1000 tons a day on the average, back east 300 tons is a big pulpmill."
Where does this gem come from.
Many mills in the EAST exceed 300....as a matter of fact name one less than 500.

"Not one Canadian mill was in jeopardy over the US tax loophole."
Correct not one....most!
Comment Posted by: herbster on April 27 2010 9:55 PM
US tax loophole or not, it is obscene that taxpayers fund Canfor upgrades, when they are obviously profitable. Money to Canfor when we have to shut down schools? Give your head a shake.