A strong Canadian dollar eroded third-quarter 2007 profit margins for Canfor Pulp LP even though the B.C. forestry company reported higher sales in the period ending September 30, 2007.
Canfor Pulp revenue rose 7% to $228.9 million in the third quarter compared with $213.6 million in 2006's third quarter.
Quarterly profit, however, fell 20.7% to $33.2 million compared with $41.9 million in the same period a year ago.
The rapidly rising dollar and a 4% increase in fibre sales affected the company's quarterly profit, offsetting any gains made by cost reductions accumulated from lower manufacturing costs and higher mill productivity.
Despite the drop in quarterly profits, income for Canfor Pulp Income Fund (TSX:CFX.UN), which owns 49.8% of Canfor Pulp LP, doubled to $16.5 million from $8.4 million in the same period a year ago.
Canfor Corp. owns the remaining stake in Canfor Pulp LP.
Canfor Pulp Income Fund's unit price range during the past week: between $11.32 and $11.81; 52-week high: $16.45; 52-week low: $10.50.
Canfor's share price range during the past week: between $8.98 and $9.45; 52-week high: $13.98; 52-week low: $8.65.