Canfor Pulp Products reported 1Q net income of $10.3 million

Apr 24, 2012. /Lesprom Network/. Canfor Pulp Products Inc. (CPPI) announced its 1Q 2012 results. For the quarter, the Company reported net income of $10.3 million or $0.13 per share and EBITDA of $28.8 million on sales of $220 million. Results were impacted by lower market pulp prices and a strengthening Canadian dollar, as the company said in a press release received by Lesprom Network. The decline in pulp prices was partially offset by lower unit manufacturing costs and strong shipments of the Company’s pulp and paper products. EBITDA for the 1Q 2012 was $28.8 million, $38.7 million lower than the 1Q 2011. The decline was primarily attributable to lower pulp operating segment results partially offset by improved paper segment results. The decline in pulp segment results was due to lower NBSK pulp US dollar list prices and higher unit manufacturing costs, partially offset by higher pulp shipment volumes and a weaker Canadian dollar. The improved paper segment results were due to lower prices for slush pulp, partially offset by lower realized paper prices and lower shipment volumes. Pulp segment operating income of $12.2 million decreased $39.3 million due primarily to lower NBSK US list prices and higher unit manufacturing costs, partially offset by higher shipment volumes and a weaker Canadian dollar. Canfor Pulp Products Inc. (CPPI) is the successor to Canfor Pulp Income Fund (the Fund) following the completion of the conversion of the Fund from an income trust to a corporate structure on January 1, 2011 (the Conversion). The Conversion involved the exchange, on a one-for-one basis, of all outstanding Fund Units for common shares of CPPI. Upon completion of the Conversion, the unitholders of the Fund became the sole shareholders of CPPI and CPPI became the direct holder of the 49.8% interest in the Partnership.