Vancouver's Canfor Pulp Income Fund (TSX:CFX.UN) reported a 64% drop in net income for 2008 to $46.8 million from $129.8 million in 2007.
Reduced demand and increased inventory due to the rapidly declining economy in the fourth quarter were the main reasons for the decline for the year. Unit manufacturing costs rose due to fourth-quarter production curtailments. Pulp production also fell 12% year over year due to the Prince George Pulp and Paper Mill fire last January.
Total sales fell 10.4% to $825.5 million from $921.6 million.
For 2009, Canfor Pulp expects weak demand for pulp and paper to continue throughout the first half of 2009. While the company has already cut 14,000 tonnes of pulp production in January, it said it did not plan to make additional curtailments unless market conditions decline further.
Canfor Pulp's unit price range during the past week: between $2.60 and $2.78; 52-week high: $12.10; 52-week low: $2.01.