Results, Upgrades, And A New CEO For Canfor Corp

Friday, February 11, 2011 04:27 PM

Prince George, B.C. - Canfor Corporation is out with some big news on a Friday afternoon, not only is the company reporting its year-end earnings for 2010, it has also announced three capital improvement projects totalling $62-million dollars - one of which allows the resumption of operations at the Vavenby mill closed in May of 2009 - and released news that President and CEO Jim Shepard will retire this spring.

For 2010, the company's net income was $161.3-million dollars, a significant turnaround from 2009's net loss of $62.8-million dollars. Fourth quarter earnings for 2010 hit $54.9-million, up from $33.5-million in the previous quarter.

Commenting on the results, CEO, Jim Shepard says, "We continue to be very encouraged by the growth of our lumber business in key Asian markets, particularly Japan and China, which has mitigated some of the impact of the slow U.S. housing market."

In December, Canfor Corp announced a $300 million three-year capital spending program for its lumber business focused on increased productivity, higher recoveries, lower energy costs and efficient prime lumber extraction. To that end, the three projects announced today will involve two local ones - the Polar mill at Bear Lake and the Plateau mill in Vanderhoof - and upgrades to re-start the mill in Vavenby.

That mill was closed indefinitely in May of 2009, along with the corporation's Rustad and Radium markets, due to the downturn in the economy. The company anticipates re-starting the operation sometime in the third quarter and re-calling approximately 140 employees.

And finally, news that after four years at the helm, Jim Shepard will step down at the company's annual general meeting in May. Board Chair, Ronald Cliff, says "Jim has decided to return to retirement after four years as President and CEO of the Company. During that time he has lead the Company through extremely difficult economic times and leaves the Company in a strong financial position. The entire Board is appreciative of Jim’s contribution, leadership and guidance."

Don Kayne has been appointed by the Board of Directors as his replacement. Kayne has been with the company for over 32 years and has held various positions. He is currently the Vice President of Wood Products Marketing and Sales.

Previous Story - Next Story

Email |

Print |

Facebook |

Twitter |

Digg |

Del.icio.us

Posted on Friday, February 11, 2011 04:27 PM in News by 250 News

Return to Home

Comments

Posted by: scorpio42 on February 11 2011 7:33 PM

Why wasn't the future of Winton Global announced??? When do they anticipate the start up date???? If it is a permanent closure then lets get on with it and give their loyal employees of 1 year to 40+yrs their well deserved buyouts. If it's not then lets get back to work!

Posted by: Palopu on February 11 2011 8:20 PM

Canfor only owns a 1/3 share of the Winton Global Operation. If you want an announcement on that operation you probably would have to get it from the Sinclar Group of Companies.

Posted by: northman on February 12 2011 9:27 AM

Winton Global does not have a future.. The forest tenure was sold. It also helps to have your sawmill and planer facilites in the same location.

Posted by: detoe43 on February 12 2011 2:23 PM

Northman, just curious if the sale of WG's tenure is true or rumours. Any sources?
Thanks.

Posted by: NoSeverance on February 12 2011 4:39 PM

Wow Plateau was a brand new mill three years ago to the tune of 130 million. But it makes sense that they would get more because Jim Shepard was the boss for Slocan when Slocan bought Canfor with Canfor's money. Or was that Sheppard, it's been so long I don't remember.

I agree, pay the guys their serverance. Winton Global as well as Rustad's will never run again. With this announcement about profits it's a crime that they haven't paid those guys out.

The indefinate shutdowns will be 2 years for Rustad's and 3 years for Winton Global this summer. Time to pay up Canfor and be the corporate citizen you claim to be.