For the nine months ended September 30, 2013, the Company's shareholder net income was $200.6 million, or $1.41 per share, compared to $5.1 million, or $0.03 per share, reported for the comparable period of 2012.
The shareholder net income for the 3Q 2013 included various items affecting comparability with prior periods, which had an overall net positive impact on the Company's results of $2.2 million, or $0.02 per share. After adjusting for such items, the Company's adjusted shareholder net income for the 3Q 2013 was $26.2 million, or $0.18 per share, down $61.5 million, or $0.43 per share, from an adjusted shareholder net income of $87.7 million, or $0.61 per share, for the 2Q 2013. Adjusted shareholder net income for the 3Q 2012 was $13.6 million, or $0.09 per share.
The Company reported operating income of $49.3 million for the 3Q 2013, compared to operating income of $128.2 million for the 2Q. The decline in operating income largely reflected lower lumber sales realizations, increased market stumpage costs and lower lumber and pulp production volumes, partly offset by improved sales realizations for the pulp and paper segment.
Commenting on the third quarter performance, Canfor's President and CEO, Don Kayne, said, "As expected, lumber prices staged a gradual recovery after reaching their low point in June. We continue to be encouraged by solid demand for our lumber products in all of our major markets."
Kayne added that additional production volume arising from the Company's recent Elko and Mackenzie sawmill upgrades will further enhance Canfor's ability to take advantage of improving market conditions. Regarding the pulp and paper segment's third quarter results, Kayne said, "With our scheduled maintenance shutdowns now behind us and our next outage not planned until the second quarter of next year, we will be focused on enhancing our operational performance in the coming quarters."
Canfor is a leading integrated forest products company based in Vancouver, British Columbia (BC) with interests in BC, Alberta, Quebec, North and South Carolina and Alabama. The Company produces primarily softwood lumber and also produces specialized wood products and bleached chemi-thermo mechanical pulp.