Canfor profit improves

After reaching an eight-year high in March, North American lumber prices corrected sharply

Canfor Corporation recently reported shareholder net income of $110.3 million for the second quarter of 2013, compared to $61.9 million for the first quarter of 2013 and $2.6 million for the second quarter of 2012.

For the six months ended June 30, 2013, the company’s shareholder net income was $172.2 million, compared to a shareholder net loss of $15.4 million reported for the first half of 2012.

The company reported operating income of $128.2 million for the second quarter of 2013, compared to operating income of $100.0 million for the first quarter. The positive variance reflected improved results in the lumber segment mostly as a result of increased shipments and, to a lesser extent, lower manufacturing costs.

After reaching an eight-year high in March, North American lumber prices corrected sharply through the second quarter, due mostly to supply-related factors, including higher operating costs and improved railcar availability.

The average North American benchmark, western spruce/pine/fir (SPF) 2×4 #2&bttr was US$335 per thousand board feet, down 14 per cent.