Canfor Corp. reported a loss in its most recent quarter compared with a profit a year ago as revenue fell.
The forestry company says it lost $89.5 million or 71 cents per diluted share for the three months ended March 31.
That compared with a profit of $112.2 million or 87 cents per diluted share in the same quarter last year.
Sales for the first three months of 2019 amounted to $1.15 billion, down from $1.23 billion for the first three months of 2018.
READ MORE: Canfor temporarily shutting down lumber mills across B.C.
On an adjusted basis, Canfor says it lost $36.8 million or 29 cents per diluted share for the quarter compared with an adjusted profit of $145.4 million or $1.13 per diluted share a year earlier.
On Monday, Canfor temporarily curtailed operations at its B.C. lumber mills due to low prices and the high cost of fibre. The curtailment is expected to reduce Canfor’s production output by approximately 100 million board feet.
“While our B.C. based lumber business experienced significant challenges due to lower than anticipated market prices and difficult operating conditions, our U.S. South and European operations generated solid financial returns,” Canfor chief executive Don Kayne, said in a statement.
“We look forward to adding a further 200 million board feet to our U.S. South operations during the second quarter with the upcoming close of the Elliott acquisition, which will help offset the escalating log cost and fibre supply issues impacting our B.C. operations.”
Companies in this story: (TSX:CFP)
The Canadian Press
