VANCOUVER - Canadian lumber producer Interfor has has nearly doubled its sales from the previous quarter.
The company revealed its third-quarter numbers this week, revealing sales of $644.9 million. This is compared to $396.8 million in the previous quarter.
“While lumber prices fell sharply in the initial stages of COVID-19, industry-wide production curtailments in Q2’20 and growing demand from repair and renovation activities and U.S. housing starts contributed to the robust price environment during Q3’20.”
“Production in the B.C. region increased to 193 million board feet from 115 million board feet in the preceding quarter,” the company reported. “The U.S. South and U.S. Northwest regions accounted for 331 million board feet and 118 million board feet, respectively, compared to 230 million board feet and 76 million board feet in Q2’20.”
The company's shares are now trading at $16.35 compared to $5.04 when the pandemic was first declared back in March.
The company believes that lumber demand will continue to grow over as renovation activity continues in the U.S. and Canada.
“While uncertainty remains as to the duration and extent of the economic impact from the COVID-19 pandemic, Interfor is well positioned with its strong balance sheet and significant available liquidity,’ the company reported.
Other lumber producers, including Weyerhaeuser, West Fraser, and PotlatchDeltic, are all seeing huge gains this quarter.
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