Canfor Corp. doubled its second-quarter bottom line from a year ago while recovering from a Q1 net loss of C$16.2 million (US$15.46 million), the company announced Friday. But its reported C$4.5 million (US$4.29 million) net profit on sales of C$700 million (US$667.9 million) for the second quarter only slightly offset its year-to-date net loss of C$11.7 million (US$11.17).
An about-face in overall operating profits—a C$26 million (US$25 million) gain in Q2 compared to Q1’s C$21.5 million (US$20.5 million) loss—during the second quarter highlights growth in the Vancouver, British Columbia-based wood- and wood-pulp products manufacturer’s lumber-production segment. There, operating profits rebounded to post a gain of C$18.9 million (US$18 million) from a loss of C$11.3 million (US$10.78 million) a year ago on segment sales of C$433.5 million (US$413.6 million), up more than one-third for the same period. That growth contributes to the segment's C$1.2 million ($1.15 million) year-to-date loss. The company credited stronger demand in the North American housing markets and more construction in overseas markets, which support increased lumber prices.
Lumber shipments increased 16% in Q2 from Q1 to total nearly 1.2 billion board feet as a result of two recent mill acquisitions and investments in current operations.