Canfor, has announced an operating loss of $85.8 million in the first quarter of 2024, showing an improvement from $191.3 million in the previous quarter. After adjustments, the operating loss was $116.0 million, compared with $232.4 million previously, primarily due to improved performance in the lumber segment.
Canfor President Don Kayne commented on the results, highlighting the mitigation of challenges in global lumber markets through global diversification and operations optimization strategies.
In the Timber segment, an adjusted operating loss of $87.3 million was noted, a significant improvement from $192.4 million previously, driven by price increases in North America and the United Kingdom.
Although residential construction activity in the U.S. was impacted by affordability concerns, lumber prices are expected to stabilize in Asia and improve in Europe.
In the pulp and paper segment, an adjusted operating loss of $15.7 million was reported, an improvement from $26.0 million previously, driven by a modest increase in pulp production and stable prices in the global pulp market.
Canfor anticipates stronger market conditions for softwood pulp and improved pricing in Asia and Europe. The company is taking strategic steps, including the acquisition of El Dorado in Arkansas and the optimization of its Canadian facilities, to maintain its global competitiveness.
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