Lumber giant Canfor Corp. (TSX:CFP) was back in the black in 2010 due to increased demand from Asia, and outgoing president and CEO Jim Shepard wasted no time thanking his successor, Don Kayne, for it.
"The terrific growth we are getting in China is a result of Don’s leadership," Shepard said during a conference call Monday morning.
In 2010, the company posted a net income of $161.3 million compared with a net loss of $62.8 million the year before.
That equated to a net income of $0.49 per share for stockholders compared to a net loss of $0.50 per share in 2009.
The company issued its results on Friday after market close, simultaneously announcing a $145 million capital spending plan and Shepard’s retirement.
Kayne, vice-president wood products marketing and sales, is expected to succeed Shepard after he retires at the company’s annual general meeting in May.
During Monday’s conference call, Shepard said the company is "moving into a new world" for lumber, shifting its dependence away from the U.S. housing market and toward new markets in Asia.
Shepard went on to say that it was Kayne, who has been with the company for more than 32 years, who led Canfor into Asia several years ago.
"Four or five years ago we saw we were going to have to get beyond depending on the housing sector, and that’s when Don really started to lead the charge to get to other markets, developing more of our markets in Japan and Korea, and specifically focusing in on China."
He added that ongoing demand from Asia this year and a gradual recovery in the U.S. will support the company’s capital investment plan, which includes improvement projects at its Vavenby, Polar and Plateau mills in B.C.
At press time, Canfor’s shares were down 2% to $12.45.