For the Q4 2022, Canfor Corporation reported an operating loss of $308.0 million. After taking account of adjusting items, the Company’s operating loss for the Q4 2022 was $163.8 million compared to an adjusted operating income of $197.1 million for the previous quarter, largely reflecting a material decline in both the lumber and pulp and paper segment results.
Q4 2022 sales were $1,373.3 million, compared to $ 1,571.3 million in the Q4 2021.
Canfor’s President and CEO, Don Kayne, said, “After a strong start to the year, unfavourable global lumber market conditions led to sharp pricing declines and temporary capacity reductions across our Western Canadian sawmills, which also disrupted the supply of fibre to our pulp mills. As a result, our lumber and pulp business both faced significant challenges in the Q4 which directly impacted our quarterly results. Early in 2023, we made the difficult but necessary decision to create a more sustainable operating footprint in BC. Our goal is to match mill capacity with the economically available fibre for harvest to enhance our ability to compete and to operate throughout the market cycles. This is what will ultimately create greater stability for our employees and communities, while ensuring we can continue to provide the high quality, low carbon products that are in demand by our customers around the world. We sincerely regret the impact these decisions have on our employees, their families, contractors, and the businesses that support our operations and the local community. We thank our employees for their hard work, resilience, and commitment to safety as we work together to navigate this very challenging environment.”
The Company’s operating income was $1,306.2 million for the current year (adjusted shareholder net income per share of $7.15), down $897.8 million compared to the record-high adjusted operating earnings of $2,204.0 million for the prior year (adjusted shareholder net income per share of $12.25). The Company reported operating income of $1,074.1 million for 2022, versus operating earnings of $1,908.1 million for 2021.
Canfor is a leading integrated forest products company based in Vancouver, BC with interests in BC, Alberta, North and South Carolina, Alabama, Georgia, Mississippi, and Arkansas.