VANCOUVER, BC -- Canfor Corporation posted a loss of $44.1 million for the fourth quarter of 2011 compared to a $32.9 million profit for the same period in 2010.
Included in this variance are restructuring costs of $22.5 million related to the announced closures of the company's Rustad sawmill and Tackama plywood plant in the BC Interior, and asset impairment charges of $9.2 million relating to certain lumber and panels assets. Excluding these items, and the impact of inventory valuation adjustments, Canfor's operating loss was $21.4 million.
Canfor President and CEO Don Kayne, said, "The fourth quarter provided challenges on several fronts. We saw weaker lumber and NBSK pulp realizations, related in part to the slowdown in demand from China, particularly for lower lumber grades, the ongoing slow U.S. recovery and overall global economic issues. To mitigate log cost pressures we have made significant strides in addressing trucker availability, while we continue to see positive trends in productivity, lumber recoveries and conversion costs from our capital investment and continuous improvement initiatives. We expect to see further benefits from our capital investment program in 2012."
Looking ahead, Canfor said the acquisition of Tembec Industries Ltd.'s southern British Columbia Interior wood products assets is currently scheduled to close towards the end of the first quarter of 2012, subject to customary closing conditions including regulatory approval. Commenting on the acquisition, Kayne sid, "This acquisition demonstrates our long-term confidence in the lumber sector, and aligns very well with our strategic focus."
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