Canfor Reports $350 Million Net Loss Amid Lumber Industry Decline

Canfor Corp. reported a significant net loss of $350.1 million for the latest quarter, driven by writedowns and impairment charges linked to mill closures in a weakening lumber market. This loss translates to a $2.96 per share drop, a steep decline compared to last year’s loss of $23.1 million, or 19 cents per share.

The Vancouver-based forestry company attributed its financial struggles to ongoing challenges in its British Columbia operations, including limited access to economically viable timber, weak lumber prices, rising operational costs, and higher tariffs. Additionally, regulatory hurdles have further complicated its operations.

Don Kayne, Canfor's CEO, described the quarter as exceptionally difficult, prompting the company to scale back its activities. Among the key developments was the announcement of the closure of mills in Fort St. John and Plateau, northern B.C., which resulted in a $100 million asset writedown and impairment charge, along with $38.6 million in restructuring costs.

When adjusted for these factors, Canfor's quarterly loss stood at $139 million, similar to the $135-million loss reported in the previous quarter. In contrast, the company had an adjusted loss of $19.4 million during the same period last year, underscoring the ongoing decline in the lumber industry.