Canfor Pulp second-quarter earnings fall 93%, hit by outages and shutdowns
July 25, 2012 - 8:33 PM
VANCOUVER - Canfor Pulp Products Inc. (TSX:CFX) says its second-quarter net income slipped 93 per cent to $3.3 million as the company was hit by outages and shutdowns.
The Vancouver-based pulp and paper producer said late Wednesday its second-quarter earnings amounted to five cents per share, down from profit of $48.2 million or 68 cents per share in the second quarter of 2011.
The company reported operating income of $10.4 million for the second quarter of 2012, compared to $11.5 million in the first quarter of 2012, as weaker results in the pulp segment were only partially offset by improved earnings in the paper segment.
Canfor said its results were impacted by scheduled maintenance outages and an unscheduled shutdown, which reduced pulp production by 49,000 tonnes and increased unit manufacturing costs.
A maintenance outage at the Intercontinental Pulp Mill, and an extended maintenance outage at the Prince George Pulp Mill, reduced production by another 18,000 tommes.
A shutdown at Northwood Pulp Mill reduced overall production by about 31,000 tonnes.
"Pulp markets were relatively balanced heading into the second quarter of 2012 with stable producer inventories as reduced demand was offset by industry reductions in supply due to spring maintenance downtime," the company said in a statement.
"However, global pulp markets showed signs of weakness as the quarter progressed, particularly in Europe and North America. "
News from © The Canadian Press, 2012