Canfor Pulp Profits Down

By 250 News

The Canfor Pulp Income  Fund  has  reported  a profit for 2007, but the  numbers are down from  the previous quarters.

The Fund had sales  of $215.1 million in the fourth quarter, and net income of $12.1 million, for the quarter ended December 31, 2007.  The impact of a stronger Canadian dollar during the quarter and increased manufacturing costs reduced the results when compared to the prior quarter sales of $228.9 million and net income of $33.2 million.

The fourth quarter 2007 results are lower than those in the same period a year ago, when sales were $225.2 million with net income of $44.8 million primarily due to the impact of the stronger Canadian dollar and fibre costs, which more than offset increases in NBSK pulp list prices.

In the fourth quarter, the Partnership produced 261,400 tonnes bringing the year's total to 1,175,900 tonnes, an annual production record, bettering the previous year's record by more than 31,000 tonnes. This quarter production level was 4,300 tonnes below the third quarter due in part to additional scheduled maintenance down time - 1,700 tonnes, - and also as a result of the onset of winter operating conditions.

Commenting on the results, Paul Richards, President and CEO of the Partnership said: "It was another solid operating quarter and a record breaking year, with the establishing of new annual production and safety performance records, strong focus on controllable costs and the highest level of net sales since 1995. These factors enabled us to mitigate the impact of the rapid rise in the Canadian dollar and the increased pressure through the year on fibre supply and fibre price related to sawmill curtailments precipitated by the slowdown in the U.S. housing market."

Pulp prices in U.S. dollars have continued to increase during the quarter but not enough to fully offset the impact of the stronger Canadian dollar against U.S. currency.

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