VANCOUVER, BC, March 5, 2024 /CNW/ – Canfor Corporation (“The Company” or “Canfor”) (TSX:CFP) today reported its 2023 and fourth quarter of 2023 results:
Overview
2023 operating loss of $532 million; shareholder net loss of $326 million, or $2.71 per share
Q4 2023 operating loss of $191 million; shareholder net loss of $117 million or $0.98 per share
Solid earnings for the Company’s European and US South operations in 2023, with persistent challenges in British Columbia
Successful execution of significant capital growth program in the US South throughout 2023
Sustained pressure on global lumber market conditions and pricing through most of the fourth quarter, drove quarter-over-quarter decline in results in all lumber operating regions, most notably in Western Canada
Moderate uplift in global pulp market fundamentals through the fourth quarter driven by a slight increase in demand and purchasing activity in most major regions; 20% improvement in pulp production quarter-over-quarter
Ongoing challenges with the availability of economically viable fibre impacting lumber and pulp operating rates in British Columbia into 2024
Financial Results
The following table summarizes selected financial information for the Company for the comparative periods:
Q4
Q3
YTD
Q4
YTD
(millions of Canadian dollars, except per share amounts)
2023
2023
2023
2022
2022
Sales
$
1,282.9
$
1,312.3
$
5,426.6
$
1,373.3
$
7,426.7
Reported operating income (loss) before
amortization, asset write-downs and impairments
$
(89.1)
$
42.6
$
(111.2)
$
(62.6)
$
1,609.9
Reported operating income (loss)
$
(191.3)
$
(65.1)
$
(531.6)
$
(308.0)
$
1,074.1
Adjusted operating income (loss) before
amortization, asset write-downs and impairments1
$
(130.2)
$
21.8
$
(168.4)
$
(57.0)
$
1,703.4
Adjusted operating income (loss)1
$
(232.4)
$
(85.9)
$
(588.8)
$
(163.8)
$
1,306.2
Net income (loss)2
$
(117.1)
$
(23.1)
$
(326.1)
$
(207.9)
$
787.3
Net income (loss) per share, basic and diluted2
$
(0.98)
$
(0.19)
$
(2.71)
$
(1.70)
$
6.39
Adjusted net income (loss)1,2
$
(127.2)
$
(19.4)
$
(335.8)
$
(126.8)
$
880.4
Adjusted net income (loss) per share, basic and
diluted1,2
$
(1.06)
$
(0.16)
$
(2.79)
$
(1.04)
$
7.15
1 Adjusted results referenced throughout this news release are defined as non-IFRS financial measures. For further details, refer to the “Non-IFRS Financial Measures” section of this document.
2 Attributable to equity shareholders of the Company.
2023 was a challenging year for Canfor, as the weak global lumber market conditions experienced late in 2022 continued throughout the current year. Ongoing inflationary pressures and high interest rates gave rise to persistent affordability concerns for consumers, reducing global lumber demand and increasing lumber inventory levels in most global regions. Despite the economic uncertainty, demand in the repair and remodel segment remained strong through 2023, especially in North America, exceeding levels observed before the pandemic.
In response to these global market conditions as well as a constrained fibre supply environment, the Company reduced production at its Western Canadian operations by a total of 760 million …