Canfor Pulp Products Inc. announces 3Q 2011 results

Oct 24, 2011. /Lesprom Network/. Canfor Pulp Products Inc. (CPPI) announced its 3Q 2011 results as well as the results of Canfor Pulp Limited Partnership (the Partnership) in which CPPI has a 49.8% ownership. CPPI reported net income of $8.3 million, representing CPPI's share of the Partnership's income less an income tax provision of $3.7 million. The Partnership reported sales of $233.9 million and net income of $23.9 million, for the quarter ended September 30, 2011. The Partnership generated EBITDA of $49.6 million in the quarter. In the quarter, the Partnership generated distributable cash of $26.4 million. The Partnership results were impacted by lower market pulp prices and a planned outage at the Northwood Pulp Mill, partially offset by improved paper segment earnings. A record daily production rate was achieved on the paper machine during the quarter. Global softwood pulp markets weakened through the 3Q. Global softwood pulp producer inventories increased to 32 days of supply due to historical slow demand during the summer months from Europe and North America, and some destocking by China. As a result, NBSK pulp list prices decreased $70 per tonne for North America to $970 and $60 per tonne for Europe to $950. The Partnership's NBSK pulp list price for China decreased US$90 per tonne to $840. Canfor Pulp Products Inc. (CPPI) is the successor to the Canfor Pulp Income Fund (the Fund) following the completion of the conversion of the Fund from an income trust structure to a corporate structure by court approved plan of arrangement under the Business Corporations Act (British Columbia) on January 1, 2011.