Canfor is reporting a  loss of $51.6 million for the third quarter.

Like the other lumber producers, Canfor is  blaming the loss on lower prices for lumber and OSB.  Lumber prices were off by 12% compared to the 2nd quarter, and 15% lower than  prices for the same period a year ago.

“The market prices for Canfor’s lumber and panel products are extremely low due to the slowdown in new home construction in our core US markets. With the Canadian dollar remaining relatively strong, we are in a very difficult business environment" said  Jim Shepherd, President and Chief Executive Officer of Canfor.

He also noted there will be efforts made to improve the performance of  some  operations "Despite the challenges of the mountain pine beetle affected wood, we are not satisfied with the overall performance of our operations. Our efforts are being directed to their improvement and to meet the high expectations we have established.”

Shepherd offered support for the Softwood Lumber agreement  "Canfor can serve its customers in the US within a framework of greater certainty. We will continue to develop global markets for our products."

The good news for Canfor came from two fronts.  First, the Pulp side of the industry is doing well as pulp prices averaged 6% higher than the previous quarter and 21% higher than the same period in 2005.  The second  bit of good news is about the  refund "Over the coming months, Canfor will receive approximately US $730 million. Considerations for the use of these funds will be reviewed going forward.” said Shepherd.

Canfor continues to review lumber prices on a daily basis to see if there is need to schedule more downtime in addition to  the shut downs already  announced a week ago. 

According to Random Lengths Lumber market report, the price  for lumber continues to slide