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Canfor Pulp reports results for the third quarter of 2024

VANCOUVER, BC, Oct. 25, 2024 /CNW/ - Canfor Pulp Products Inc. ("The Company" or "CPPI") (TSX:CFX) today reported its third quarter of 2024 results:

Overview.

Q3 2024 operating loss of $209 million, includes a $211 million asset write-down and impairment charge in the pulp segment resulting from further deterioration in economic fibre availability following recent British Columbia Interior sawmill closure announcements.

After taking into consideration one-time items, Q3 2024 operating income of $2 million compared to similarly adjusted operating loss of $6 million in Q2 2024.

Modest improvement in NBSK pulp unit sales realizations driven by steady North American pulp pricing through most of the third quarter and favourable timing lag in shipments, despite weak demand in China and notable increase in pulp producer inventory levels.

Orderly wind down of one production line at Northwood NBSK pulp mill completed in August.

Financial results.

The following table summarizes select financial information for CPPI for the comparative periods:

(millions of Canadian dollars, except per share amounts)

Q3 2024

Q2 2024

YTD 2024

Q3 2023

YTD 2023

Sales

$

193.2

$

220.0

$

635.5

$

188.8

$

681.6

Reported operating income (loss) before amortization, asset write-down and impairment

$

18.8

$

11.0

$

31.0

$

(27.7)

$

(43.6)

Reported operating loss

$

(209.3)

$

(5.6)

$

(230.6)

$

(49.3)

$

(112.4)

Adjusted operating income (loss) before amortization, asset write-down and impairment1

$

18.8

$

11.0

$

31.0

$

(29.7)

$

(35.1)

Adjusted operating income (loss)1

$

1.7

$

(5.6)

$

(19.6)

$

(51.3)

$

(103.9)

Net loss

$

(156.1)

$

(6.3)

$

(164.8)

$

(35.7)

$

(82.9)

Net loss per share, basic and diluted

$

(2.39)

$

(0.10)

$

(2.53)

$

(0.55)

$

(1.27)

Adjusted net loss1

$

(2.1)

$

(6.3)

$

(10.8)

$

(35.7)

$