Lower lumber prices and a rising Canadian dollar have led to Canfor Corporation recording a sharp drop in third quarter earnings.
The company’s profits fell to C$17.4m for the three months ended September 30, down from C$200m a year ago.
Canfor said US dollar denominated lumber prices were 26% lower than last year, while OSB prices had fallen 18% and plywood 34%. The Canadian dollar has increased about 9% in value over the past 12 months, making it more difficult to sell Canadian timber in the US.
Jim Shepherd, Canfor’s president and chief executive officer, said: “As a result of challenging commodity prices and the strengthening Canadian dollar, this was a difficult quarter financially.
“However, we’ll weather difficult markets through continued operational improvements, benefits from recent investments in our mills and the company’s strong financial condition.”
Canfor is the largest softwood lumber producer in Canada.
