International Forest Products Limited (Interfor) reported operating earnings during the fourth quarter of C$1.3 million (US$1.31 million), a complete turnaround from the C$7.8 million (US$7.86 million) operating loss the company posted during fourth quarter 2009.
For the year, however, the company posted a C$7 million (US$7.05 million) operating loss, which was an improvement over the C$50.8 million (US$51.2 million) operating loss the company posted in 2009.
The Vancouver-based company also announced total sales of C$176.3 million (US$177.6 million) for the quarter, a 40% improvement over the same period in 2009. Interfor posted net earnings for the quarter of C$600,000 (US$604, 617), which was a big change from the C$5 million (US$5.04 million) net loss the company posted during the same period a year earlier. For the year, the company posted sales of C$625.6 million (US$630.4 million), a 60% increase over 2009's results.
The company cited the record volume of lumber, driven by demand from China as the cause for the improved performance. The demand from China directly impacted the supply of lumber in the North American market and was able to drive up prices.
Interfor's lumber division continued to make improvements bringing in C$137.5 million (US$138.5 million) in sales for the quarter, compared to the C$93.1 million (US$93.8 million) it brought in during fourth quarter of the year prior. The company said lumber shipments were also up by 37.1% for the fourth quarter.
The company's log segment brought in C$20.6 million (US$20.75 million) in sales during the quarter, down from the C$21.9 millions (US$22.1 million) it brought in during the third quarter, but a 19% increase compared to fourth quarter 2009.
Interfor also announced earnings before interest, taxes, depreciation and amortization (EBITDA) of C$14.6 million (US$14.7 million), a 131% increase over the EBITDA posted during fourth quarter 2009.
Along with releasing fourth quarter results the company also announced that Steven Hofer has been appointed to the newly created position of Vice President, Sales and Marketing.