Canfor Corp. (TSX:CFP) released its quarterly results yesterday and cites increasing U.S. housing activity as a reason for an improved bottom line in 2013’s first quarter.
The company reported $61.9 million in net income in Q1, an increase of $79.9 million over the same period last year, when it reported a loss of $18 million. The quarter’s revenues were up 190% compared with 2012’s fourth quarter, which had revenue of $21.3 million.
“We are encouraged by the stronger lumber markets and steady improvement in the U.S. housing market,” said Canfor president and CEO Don Kayne. “Global pulp markets improved slightly as we saw some modest upward movement in prices ahead of the seasonally stronger spring period.”
He explained that the company’s lumber and NBSK (northern bleached softwood kraft) pulp mills saw increasing productivity throughout the quarter.
“We are seeing positive results from the significant capital improvements we have made in the last few years.”
The company reports that U.S. housing activity has hit its highest levels in more than five years, with total housing starts of 969,000 units (seasonally adjusted), up 7% from the previous quarter.
Canfor’s pulp shipments increased by 5% when compared with 2012’s fourth quarter, which is largely due to higher shipments to China.
The company said lumber consumption is expected to improve slightly over the course of 2013 as U.S. housing activity gains momentum. Canadian markets are forecast to remain relatively slow, and modest growth is anticipated in offshore markets.
