Interfor Corporation recorded a net loss in Q2 2023 of $14.1 million, or $0.27 per share, compared to $41.3 million, or $0.80 per share in Q1 2023 and net earnings of $269.9 million, or $4.92 per share in Q2 2022.
Adjusted EBITDA was $41.9 million on sales of $871.8 million in Q2 2023 versus $26.1 million on sales of $829.9 million in Q1 2023 and $428.6 million on sales of $1.4 billion in Q2 2022.
Lumber shipments were a record 1.1 billion board feet, or 112 million board feet higher than Q1 2023, which outpaced production resulting in a 16% reduction in lumber inventories.
Lumber production totaled 1.0 billion board feet, representing a decrease of 8 million board feet quarter-over-quarter.
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, labour availability and constrained global 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 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. The Company has annual lumber production capacity of approximately 5.2 billion board feet and offers a diverse line of lumber products to customers around the world.
