VANCOUVER, BC, July 23, 2020 - Canfor Corporation ("The Company" or "Canfor") (TSX: CFP) today reported its second quarter 2020 results:
- Second quarter of 2020 reported operating income of $97 million, includes $81 million recovery of previous inventory write-downs in the lumber segment
- Adjusted shareholder net income of $83 million, or $0.67 per share
- Vida Group ("Vida") announced agreement to purchase Bergs Timber Production AB ("Bergs") sawmill assets for $43 million plus working capital, which will add 215 million board feet to Vida's annual capacity
- Completed acquisition of Elliott Sawmilling Co., LLC ("Elliott")
- Announced permanent closure of Isle Pierre sawmill, located near Prince George, British Columbia ("BC") due to an insufficient supply of economically viable timber
The following table summarizes selected financial information for the Company for the comparative periods:
For the second quarter of 2020, the Company reported operating income of $96.9 million, $185.7 million higher than the operating loss of $88.8 million reported for the first quarter of 2020, reflecting materially higher earnings in the lumber segment, offset in part by a moderate decline in pulp and paper segment earnings.
Results in the second quarter of 2020 included an $80.6 million recovery in the lumber and log inventory write-down provisions, partly offset by an $8.2 million inventory write-down for the pulp and paper segment, as well as a countervailing ("CVD") and anti-dumping duties ("ADD") expense of $19.2 million and restructuring costs of $14.4 million, largely related to the announced permanent closure of the Company's Isle Pierre sawmill (which will take effect in the third quarter following an orderly wind down of operations). After adjusting for the aforementioned items, the Company's operating income was $58.1 million for the second quarter of 2020, up $49.2 million from similarly adjusted operating income of $8.9 million in the first quarter of 2020.