Canfor Corp. says its results turned positive in the second quarter on a large reversal of a writedown in its lumber operations due to improved demand and prices towards the end of the quarter.
The Vancouver-based forest products firm says it earned $60.7-million or 48 cents per share in the three months ended June 30, compared with a loss of $48.8-million or 38 cents per share a year earlier.
The results included an $80.6-million recovery of previous inventory write-downs as an unexpected increase in demand in the months following a dramatic drop in U.S. housing starts in April prompted a big boost in lumber prices.
Western SPF (spruce, pine, fir) prices surged 53 per cent to US$432 per million board feet by the end of June, compared with a low of US$282 per Mfbm in April.
Adjusted profits reached $83.4-million or 67 cents per share, compared with a loss of $12-million or 10 cents per share in the prior year.
Revenues decreased 15 per cent to $1.1-billion from $1.3-billion in the second quarter of 2019. Canfor was expected to lose 27 cents per share on $1.03-billion of revenues, according to financial markets data firm Revinitiv.
Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.