Canfor reports 4Q operating loss of $64 million

Feb 09, 2012. /Lesprom Network/. Canfor Corporation reported a net loss attributable to shareholders ("shareholder net loss") of $44.1 million for the 4Q 2011, compared to a shareholder net loss of $21.6 million for the 3Q 2011 and shareholder net income of $32.9 million for the 4Q 2010. For the year ended December 31, 2011, the Company's shareholder net loss was $56.6 million, compared to shareholder net income of $81.4 million for 2010. The shareholder net loss for the 4Q 2011 included various items affecting comparability with prior periods, which had an overall net negative impact of $12.0 million. After adjusting for such items, the Company's adjusted shareholder net loss for the 4Q 2011 was $32.1 million compared to an adjusted shareholder net loss of $1.8 million for the 3Q 2011, and adjusted shareholder net income of $15.1 million for the 4Q 2010. For the year ended December 31, 2011, the adjusted shareholder net loss was $31.7 million compared to adjusted shareholder net income of $74.1 million for 2010. The Company reported an operating loss of $64 million for the 4Q 2011, an adverse variance of $78.5 million from operating income of $14.5 million in the 3Q 2011. Included in this variance are restructuring costs of $22.5 million related to the announced closures of the Company's Rustad sawmill and Tackama plywood plant in the BC Interior, and asset impairment charges of $9.2 million relating to certain lumber and panels assets. Excluding these items, and the impact of inventory valuation adjustments, Canfor's operating loss was $21.4 million, an adverse variance of $36 million compared to similarly adjusted operating earnings for the previous quarter, reflecting lower prices and higher log costs in the lumber segment, as well as lower prices in the pulp and paper segment. Canfor is a leading integrated forest products company based in Vancouver, British Columbia (BC) with interests in BC, Alberta, Quebec, Washington state, and North and South Carolina. The Company produces primarily softwood lumber and also produces oriented strand board (OSB), remanufactured lumber products, specialized wood products and bleached chemi-thermo mechanical pulp (BCTMP).