Canfor Corporation posted 2006 net income of $471.8 million

Feb 26, 2007. /Lesprom Network/. Canfor Corporation reported on February 22 net income of $471.8 million for the year, or $3.31 per share on a diluted basis. Net income of $465.3 million, or $3.26 per share, was recorded for the fourth quarter. These results include a refund of antidumping and countervailing duties plus interest of $551.2 million after tax, which had a $3.87 favourable impact on earnings per share in the quarter. Sales of $3.84 billion were recorded for 2006 compared to $3.79 billion. For the fourth quarter sales were $892 million compared to $853.8 million for the fourth quarter 2005. ”2006 was an important year for Canfor, with several key accomplishments, but also a year of difficult market conditions and operating challenges. Prices for wood products deteriorated throughout the year, which, combined with the continued strength of the Canadian dollar, contributed to weaker financial results. We had operating challenges from the beetle-infested wood throughout central BC and in the start-up of new technology and capital in our mills, “ said Jim Shepherd, president and CEO of Canfor Corporation. Mr. Shepherd continued by saying, “In 2006, we continued to deliver on our strategy of focussing our growth on our wood products business. To this end, we reorganized our coastal assets and separated our NBSK pulp and paper assets through the creation of the Canfor Pulp Income Fund, and then distributed fund units representing 49.8% of the pulp and paper business to our shareholders, providing a significant shareholder value return. We also acquired the New South group of companies in the Carolinas, diversifying our product mix and extending our manufacturing base into the United States. Furthermore, a long-term resolution was negotiated in the softwood lumber dispute, which has provided a framework for greater certainty and with the duty refunds fully received, financial flexibility going forward with a strong balance sheet. Mr. Shepherd also said, “We expect markets to continue to be difficult through 2007, but our efforts are focused on reducing costs and improving productivity and efficiency, which, combined with a loyal, growing customer base, will allow Canfor to weather this downturn in the cycle. Another challenge in 2007 will be to deal with the impact of the mountain pine beetle. The epidemic is well known, but the ever-changing fibre quality impacts are not. Significant effort is going into understanding the beetle impacts, both present and future, for our company. And lastly, the strength of our balance sheet gives us options for growth that we will prudently explore.” Canfor Corporation is a leading Canadian integrated forest products company based in Vancouver, British Columbia, with interests in facilities in British Columbia, Alberta, Quebec, Washington State and North and South Carolina. The company is the largest producer of softwood lumber in British Columbia, while also producing oriented strand board (OSB), plywood, remanufactured lumber products and specialized wood products. Canfor also owns a 50.2% interest in Canfor Pulp Limited Partnership, which is one of the largest producers of northern softwood kraft pulp in Canada and a leading producer of high-performance kraft paper. Canfor shares are traded on the Toronto Stock Exchange.