In the third quarter of 2023, Canfor reported a consolidated operating loss of $65.1 million, including a $49.3 million loss from Canfor Pulp Products Inc. Results for the quarter included a net reversal of a previously recognized inventory write-down and a net recovery of countervailing and anti-dumping duties. Despite challenges in the pulp and construction market, solid performance in the southern U.S. and Europe was highlighted by its global diversification strategy.
In the lumber segment, results improved, driven by Southern Yellow Pine pricing in the U.S. and a modest improvement in market prices in Europe. Although lumber market conditions remained subdued, factors such as home repair and remodeling drove demand. Affordability constraints are forecast in the short to medium term, but housing demand in North America and the low supply of used homes support the sector in the long term.
In the pulp and paper segment, Canfor faced an adjusted operating loss of $51.3 million due to weak conditions in the global pulp market. Pulp prices saw some improvement towards the end of the quarter, but sales were affected by shipment delays and a decline in production. Pulp markets are expected to improve in the fourth quarter, but global economic uncertainty persists.
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