Canfor Corporation (new)

Latest Results (13.01.2025):

Operating Loss

In the third quarter of 2024, Canfor Corporation (new) reported an operating loss of $559.7 million, a significant increase from the $250.8 million loss in the second quarter of 2024. This increase was primarily due to operational challenges in British Columbia, including limited access to economic fibre, weak lumber market conditions, and rising operating costs.

Asset Write-Downs

During Q3 2024, Canfor Corporation (new) recognized an asset write-down and impairment charge of $100.3 million related to its lumber segment assets. This was in connection with the permanent closure of its Plateau and Fort St. John operations in northern BC, which was part of a strategic response to ongoing operational constraints.

Net Gain on Asset Sales

Canfor Corporation (new) completed the sale of its remaining Mackenzie sawmill assets and associated forest tenure for $66.5 million in Q3 2024. This transaction, along with other asset sales during the period, resulted in a net gain on sale of $34.9 million, contributing positively to the financial results of the quarter.

Duty Expenses

In Q3 2024, Canfor Corporation (new) recognized a duty expense of $67.2 million following the finalization of countervailing and anti-dumping duty rates applicable to the fifth period of review. This was a reversal from Q3 2023, where the company had a net duty recovery of $43.3 million related to the fourth period of review.

Pulp and Paper Segment

The pulp and paper segment of Canfor Corporation (new) reported an operating loss of $209.3 million in Q3 2024, including an asset write-down and impairment charge of $211.0 million. This was due to a significant reduction in the supply of sawmill residual chips, driven by extensive sawmill curtailments and closures in central and northern BC.