Canfor Corporation reports significant Q2 2024 losses amid market weakness and operational challenges

Canfor Corporation released its financial results for the second quarter of 2024, detailing significant challenges and operational decisions. The company reported an operating loss of US$251 million and a shareholder net loss of US$191 million, translating to a loss of US$1.61 per share.

After accounting for adjusting items totaling US$83 million and restructuring costs of US$39 million, the adjusted operating loss for Q2 2024 stood at US$129 million. This compares to an adjusted operating loss of US$116 million in the first quarter of 2024.

The report highlights continued weakness in North American lumber markets, with persistent downward pressure on benchmark pricing, particularly affecting Southern Yellow Pine (SYP). While Canfor experienced solid earnings from its European operations, the US South results were negatively impacted by weak SYP pricing. Additionally, the company faced challenges in Western Canada.

In response to these conditions, Canfor announced the permanent closure of its Polar and Jackson sawmills and the suspension of planned reinvestment in its Houston operations. On the pulp side, strong global pricing and moderate improvements in NBSK pulp unit sales were noted. However, the company also announced the indefinite curtailment of one production line at the Northwood NBSK pulp mill.

The company cited ongoing constraints in accessing economically viable fibre in British Columbia as a factor impacting lumber and pulp operating rates, both in the near term and for the remainder of the year.