VANCOUVER Feb 5 Canadian forest products
company Canfor Corp posted a higher fourth-quarter
profit on Wednesday, boosted by strong lumber prices and an
increase in pulp production and shipments.
The Vancouver-based company said it expects lumber
consumption to continue to rise in 2014 due to U.S. demand and
offshore markets, though it warned that pulp prices could come
under pressure from increased capacity.
Net income attributable to shareholders rose 31 percent to
C$28 million, or 20 Canadian cents per share, compared with
C$21.3 million, or 15 Canadian cents a share, in the fourth
quarter of 2012.
On an adjusted basis, net income was 35 Canadian cents a
share, compared with 14 Canadian cents a share in the same
quarter a year earlier. Analysts had expected earnings of 36
Canadian cents a share, according to Thomson Reuters I/B/E/S.
Lumber sales rose 14 percent to C$533.7 million in the
fourth quarter on higher prices, lower export taxes and a
favorable impact from the weakening Canadian dollar.
Pulp and paper sales climbed 21 percent to C$275.8 million
mainly on increased shipments to China, higher pulp prices and
the decline in the Canadian dollar.
The company said the outlook for lumber remained strong,
boosted by the housing market recovery in the United States and
demand for lumber from China and Japan.
Canfor produces softwood lumber and specialized wood
products, and is the majority shareholder of Canfor Pulp
Products Inc, one of the largest producers of softwood
kraft pulp in Canada.