Sales and profits down, Canfor reports for third quarter of 2022

One-day-a-week closures to continue for now

Canfor’s mill in Houston continues to be closed one day a week. (File photo)

Canfor’s mill in Houston continues to be closed one day a week. (File photo)

There’s no apparent move yet to restore full activity at Canfor’s Houston mill and the company’s other B.C. mills based on the financial results for the third quarter which is July, August and September of this year.

Revenues and profits were down in the third quarter compared to the second quarter with total sales declining from $2.173 billion in the second quarter to $1.666 billion in the third quarter.

Net income dropped from $379.7 million to $98.5 million over the same time period.

“In western Canada, despite an improvement in transportation networks through the current period, reduced operating schedules across the company’s B.C. sawmills, which commenced in the second quarter, continued well into the third quarter,” Canfor said in releasing its third quarter financial results.

“In addition, as the third quarter progressed, declining lumber prices and high log costs led to market-driven curtailments at most of the company’s sawmills in late September.”

In a statement last week, company official Michelle Ward said one-day-a-week closures will continue for the rest of the year and that it is too early to forecast about operations for 2023.

Employees at Canfor’s Houston mill have gone through three years now of either complete production closures or extended one-day-a-week closures.

The company has cited rising log costs, availability of timber, wildfires affecting its ability to move product from its mills and supply chain issues as reasons.

For this latest period, the company said rising interest rates and rising inflation affected housing affordability leading to an 11 per cent reduction in new home construction, particularly in single-family homes, in the United States.

”In BC, significant log cost increases in the current quarter were largely a result of higher market-based stumpage costs stemming from record lumber pricing earlier in the year,” the company said in analyzing its third quarter results.

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