Jul 26, 2012. /Lesprom Network/. Canfor Pulp Products Inc. ("CPPI") reported its 2Q 2012 results. Net income for the 2Q 2012 was $3.3 million, or $0.05 per share, compared to net income of $10.3 million, or $0.13 per share for the 1Q 2012 and net income of $48.2 million, or $0.68 per share for the 2Q 2011, as the company said in the press release received by Lesprom Network.
For the six months ended June 30, 2012, the Company's net income was $13.6 million, or $0.16 per share compared to $98.9 million, or $1.39 per share for the six months ended June 30, 2011.
During the 1Q 2012, Canadian Forest Products Ltd. ("Canfor") exchanged its 50.2% interest in Canfor Pulp Limited Partnership ("the Partnership") for an equivalent interest in CPPI. As a result of the exchange, CPPI's interest in the Partnership increased from 49.8% to 100%. Unless otherwise noted, the discussion of the results for the comparative periods prior to the quarter ended March 31, 2012 refers to the results of the Partnership. For the quarter ended March 31, 2012, and all subsequent quarters, the results of CPPI include the results of the Partnership (together referred to as "CPPI" or "the Company").
The Company reported operating income of $10.4 million for the 2Q 2012, compared to $11.5 million in the 1Q 2012, as weaker results in the pulp segment, substantially related to maintenance outages at the Company's mills, were partially offset by improved earnings in the paper segment.
Commenting on the quarter, CPPI's President and CEO, Joe Nemeth, said, "Our 2Q results reflected continued challenging global market conditions as well as the impact of the significant downtime at our mills. We have worked hard to mitigate the impacts of these shuts. We have now completed the majority of this year's capital plan and substantially all of the Green Transformation Program projects. Our focus going forward will be to realize the benefits of these investments."
Canfor Pulp Products Inc. is a leading global supplier of pulp and paper products with operations based in the central interior of British Columbia. The Company owns and operates three mills with annual capacity to produce over one million tonnes of northern softwood market kraft pulp, 90% of which is bleached to become NBSK pulp for sale to the market, and approximately 140,000 tonnes of kraft paper.