Apr 30, 2010. /Lesprom Network/. Canfor Corporation reported total net income of $32.5 million for the 1Q 2010, compared to a net loss of $9.1 million for the 4Q 2009 and a net loss of $69.9 million for the 1Q 2009. Quarterly sales were $577.9, up from $ 549.6 in the year earlier period, company said in a statement received by Lesprom Network. The company's net income available to its equity shareholders was $15.6 million for the 1Q 2010, up $32.6 million from a comparable net loss of $17.0 million for the 4Q 2009 and an improvement of $74.4 million from the net loss of $58.8 million reported for the 1Q 2009. Lumber and pulp prices increased significantly in the 1Q 2010, and were the major reason for the company's improved results for the quarter. Although U.S. housing activity showed only a modest improvement from the historically low levels of the previous quarter, North American lumber prices for Western Spruce/Pine/Fir and Southern Yellow Pine recorded strong gains mostly as a result of various supply factors. Northern Bleached Softwood Kraft pulp prices also moved up in the first quarter, reflecting improved demand, continued low global pulp inventory levels and the major disruption to pulp production caused by the Chilean earthquake in late February. The Canadian dollar edged towards parity with the US dollar during the quarter, partially offsetting the pricing gains for Canfor's Canadian operations. The company reported EBITDA of $78 million for the 1Q 2010, which was up $63 million when compared to the 4Q 2009. The first quarter's results reflected the positive impact from higher lumber and pulp prices both on sales and inventory values (at the end of the quarter, the company had no inventory write-downs) and a continued tight control over costs. The company ended the quarter with a cash balance of $94 million, and $424 million of available undrawn operating lines of credit. Commenting on the results, Canfor's President and CEO Jim Shepard, said, "While we are very pleased to see the rise in North American lumber prices, we recognize the increase is largely due to supply factors rather than to any significant increase in U.S. house construction activity." Shepard noted that the current price rally was attributable in part to the continued growth of lumber shipments to China and other Asian markets. Canfor is a leading integrated forest products company with interests in BC, Alberta, Quebec, Washington state, and North and South Carolina. The company produces the most softwood lumber while also producing oriented strand board (OSB), remanufactured lumber products and specialized wood products.