Interfor Corporation recorded a net loss in Q4 2022 of $72.2 million, or $1.40 per share compared to net earnings of $3.5 million, or $0.06 per share in Q3 2022 and $69.7 million, or $1.15 per share in Q4 2021.
Adjusted EBITDA was a loss of $68.7 million on sales of $810.3 million in Q4 2022 versus Adjusted EBITDA of $129.5 million on sales of $1.0 billion in Q3 2022 and Adjusted EBITDA of $149.5 million on sales of $675.9 million in Q4 2021.
Lumber production totaled 874 million board feet, representing a decrease of 112 million board feet quarter-over-quarter. This decrease reflects temporary production curtailments during Q4 2022, primarily related to economic conditions and market uncertainty impacting lumber demand and to accelerate ongoing capital and maintenance projects. The decrease was partially offset by the Eatonton, Georgia, and DeQuincy, Louisiana, sawmills ramping up to designed production capacity, and the acquisition of Chaleur Forest Products.
Outlook
Interfor expects that over the mid-term, lumber markets will continue to benefit from favourable underlying supply and demand fundamentals. Positive demand factors include the advanced age of the U.S. housing stock, a shortage of available housing and various demographic factors, while growth in lumber supply is expected to be limited by extended capital project completion and ramp-up timelines and constrained overall fibre availability.
Interfor’s strategy of maintaining a diversified portfolio of operations in multiple regions allows the Company to both reduce risk and maximize returns on capital over the business cycle. Interfor is well positioned with its strong balance sheet and significant available liquidity to continue pursuing its strategic plans despite ongoing economic and geo-political uncertainty globally. In the event of a sustained lumber market downturn, Interfor maintains flexibility to significantly reduce capital expenditures and working capital levels, and to proactively adjust its lumber production to match demand.
Interfor is a growth-oriented forest products company with operations in Canada and the United States.
