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Cision Canada
08-05-2025
- Business
- Cision Canada
Canfor Pulp reports results for the first quarter of 2025
VANCOUVER, BC, May 8, 2025 /CNW/ - Canfor Pulp Products Inc. ("The Company" or "CPPI") (TSX: CFX) today reported its first quarter of 2025 results: Overview. Q1 2025 operating income of $11 million; net income of $6 million, or $0.09 per share. Market fundamentals saw modest improvement early in the quarter; however, this momentum weakened later in the period with rising global economic and trade uncertainty. 6% increase in pulp production during Q1 2025 (versus Q4 2024) primarily due to improved operating reliability. Financial results. The following table summarizes selected financial information for CPPI for the comparative periods: (millions of Canadian dollars, except per share amounts) Q1 2025 Q4 2024 Q1 2024 Sales $ 196.2 $ 163.1 $ 222.3 Reported operating income before amortization $ 21.3 $ 12.3 $ 1.2 Reported operating income (loss) $ 10.8 $ 4.1 $ (15.7) Net income (loss) $ 6.0 $ 2.9 $ (2.4) Net income (loss) per share, basic and diluted $ 0.09 $ 0.04 $ (0.04) The Company reported an operating income of $10.8 million for the first quarter of 2025, compared to $4.1 million for the fourth quarter of 2024. These results were largely driven by a modest uplift in the Company's average Northern Bleached Softwood Kraft ("NBSK") pulp unit sales realizations in the current quarter combined with a 6% increase in pulp production compared to the fourth quarter of 2024. Commenting on the Company's first quarter results, CPPI's President and Chief Executive Officer, Stephen Mackie, said, "With improved operational performance and some positive momentum in market conditions early in 2025, we are pleased to see another quarter of positive results for our pulp business. Despite the increase in results, however, global economic uncertainty influenced pulp market conditions in the latter part of the first quarter and continues to do so early in the second quarter. Going forward, we will work to navigate these external challenges facing our business while focusing on improving safety, reliability and overall operating performance." First quarter highlights. Global softwood pulp market fundamentals experienced some positive improvement during the first quarter of 2025, with modest strength observed early in the quarter, particularly in China, as global pulp producer inventory levels began to stabilize. As the quarter progressed, however, this momentum diminished as global economic and trade uncertainty rose. As a result, US-dollar NBSK list prices to China, the world's largest pulp consumer, started the year at US$770 per tonne and saw a modest increase through the current period, ending March at US$798 per tonne. For the current quarter overall, US-dollar NBSK pulp list prices to China averaged US$793 per tonne, up US$26 per tonne, or 3%, from the prior quarter. As a result, the Company's average NBSK pulp unit sales realizations experienced a modest increase compared to the previous quarter, principally reflecting this improvement in US-dollar NBSK pulp list prices to China, coupled with a 2 cent, or 3%, weaker Canadian dollar in the current period, offset to a degree, by an unfavourable timing lag in shipments versus orders. Pulp production was 104,000 tonnes for the first quarter of 2025, up 6,000 tonnes, or 6%, from the fourth quarter of 2024, primarily driven by improved operational reliability and productivity at both of the Company's pulp mills in the current period. Operating income in the Company's paper segment was $5.4 million, compared to $5.1 million in the previous quarter, largely driven by the benefit of favourable timing of shipments around quarter-end as well as the weaker Canadian dollar in the current period. Outlook. While global pulp demand and pulp producer inventory levels are currently stable, looking ahead, global softwood pulp markets are anticipated to remain subdued as increasing uncertainty associated with economic concerns and potential trade disruptions weigh on market conditions. While the Company continues to monitor the trade situation between Canada and the US and is prepared with mitigation plans to mostly offset the impact should tariffs on US shipments be imposed, the Company is also monitoring the broader global trade situation. With its high quality, specialty product offering and market diversification, the Company is positioned to respond to any potential tariffs. The Company remains focused on optimizing its operating footprint, enhancing operational reliability as well as closely managing manufacturing and fibre costs. Looking forward, there remains significant uncertainty with regards to the availability of economically viable fibre within BC. As a result, the Company continues to anticipate that escalating log cost pressures and transportation costs in BC will translate into a higher cost fibre supply for its pulp mills (both for sawmill residual chips and whole log chips). The Company will continue to evaluate operating conditions and adjust operating rates at its pulp mills to align with economically viable fibre supply. These factors could also affect the Company's operating plan, liquidity, cash flows and the valuation of long-lived assets. The relatively muted North American demand for bleached kraft paper experienced at the end of the first quarter is projected to continue through the second quarter of 2025, largely as a result of uncertainty surrounding the trade situation between Canada and the US and the potential for tariffs on US shipments. No major maintenance outages are planned at the Company's pulp mills or at its paper machine for the second quarter of 2025. Looking forward, the Company has revised its maintenance schedule for the second half of 2025. A maintenance outage is now scheduled in the third quarter of 2025 at the Company's Intercon Pulp mill and at its Paper machine. This maintenance outage is projected to reduce both NBSK market pulp production and paper production by 2,000 tonnes each. In the fourth quarter of 2025, a maintenance outage is now scheduled at the Company's Northwood Pulp mill which is projected to reduce NBSK market pulp production by 10,000 tonnes. Additional information and conference call. A conference call to discuss the first quarter's financial and operating results will be held on Friday, May 9, 2025, at 9:00 AM Pacific time. To participate in the call, please dial Toll-Free 1-888-510-2154. For instant replay access until May 23, 2025, please dial Toll-Free 1-888-660-6345 and enter participant pass code 27122#. The conference call will be webcast live and will be available at This news release, the attached financial statements and a presentation used during the conference call can be accessed via the Company's website at Forward-looking statements. Certain statements in this press release constitute "forward-looking statements" which involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. Words such as "expects", "anticipates", "projects", "intends", "plans", "will", "believes", "seeks", "estimates", "should", "may", "could", and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are based on Management's current expectations and beliefs and actual events or results may differ materially. There are many factors that could cause such actual events or results expressed or implied by such forward-looking statements to differ materially from any future results expressed or implied by such statements. Forward-looking statements are based on current expectations and Canfor assumes no obligation to update such information to reflect later events or developments, except as required by law. About Canfor Pulp Products Inc. Canfor Pulp Products Inc. ("Canfor Pulp" or "CPPI") is a leading global supplier of pulp and paper products with operations in the northern interior of British Columbia ("BC"). Canfor Pulp operates two mills in Prince George, BC with a total capacity of 780,000 tonnes of Premium Reinforcing Northern Bleached Softwood Kraft ("NBSK") pulp (including 300,000 tonnes of annual production capacity that, effective August 2024, has been indefinitely curtailed), and 140,000 tonnes of kraft paper. CPPI shares are traded on the Toronto Stock Exchange under the symbol CFX. For more information visit SOURCE Canfor Pulp Products Inc.
Yahoo
08-05-2025
- Business
- Yahoo
Canfor Pulp reports results for the first quarter of 2025
VANCOUVER, BC, May 8, 2025 /CNW/ - Canfor Pulp Products Inc. ("The Company" or "CPPI") (TSX: CFX) today reported its first quarter of 2025 results: Overview. Q1 2025 operating income of $11 million; net income of $6 million, or $0.09 per share. Market fundamentals saw modest improvement early in the quarter; however, this momentum weakened later in the period with rising global economic and trade uncertainty. 6% increase in pulp production during Q1 2025 (versus Q4 2024) primarily due to improved operating reliability. Financial results. The following table summarizes selected financial information for CPPI for the comparative periods: (millions of Canadian dollars, except per share amounts) Q1 2025 Q4 2024 Q1 2024 Sales $ 196.2 $ 163.1 $ 222.3 Reported operating income before amortization $ 21.3 $ 12.3 $ 1.2 Reported operating income (loss) $ 10.8 $ 4.1 $ (15.7) Net income (loss) $ 6.0 $ 2.9 $ (2.4) Net income (loss) per share, basic and diluted $ 0.09 $ 0.04 $ (0.04) The Company reported an operating income of $10.8 million for the first quarter of 2025, compared to $4.1 million for the fourth quarter of 2024. These results were largely driven by a modest uplift in the Company's average Northern Bleached Softwood Kraft ("NBSK") pulp unit sales realizations in the current quarter combined with a 6% increase in pulp production compared to the fourth quarter of 2024. Commenting on the Company's first quarter results, CPPI's President and Chief Executive Officer, Stephen Mackie, said, "With improved operational performance and some positive momentum in market conditions early in 2025, we are pleased to see another quarter of positive results for our pulp business. Despite the increase in results, however, global economic uncertainty influenced pulp market conditions in the latter part of the first quarter and continues to do so early in the second quarter. Going forward, we will work to navigate these external challenges facing our business while focusing on improving safety, reliability and overall operating performance." First quarter highlights. Global softwood pulp market fundamentals experienced some positive improvement during the first quarter of 2025, with modest strength observed early in the quarter, particularly in China, as global pulp producer inventory levels began to stabilize. As the quarter progressed, however, this momentum diminished as global economic and trade uncertainty rose. As a result, US-dollar NBSK list prices to China, the world's largest pulp consumer, started the year at US$770 per tonne and saw a modest increase through the current period, ending March at US$798 per tonne. For the current quarter overall, US-dollar NBSK pulp list prices to China averaged US$793 per tonne, up US$26 per tonne, or 3%, from the prior quarter. As a result, the Company's average NBSK pulp unit sales realizations experienced a modest increase compared to the previous quarter, principally reflecting this improvement in US-dollar NBSK pulp list prices to China, coupled with a 2 cent, or 3%, weaker Canadian dollar in the current period, offset to a degree, by an unfavourable timing lag in shipments versus orders. Pulp production was 104,000 tonnes for the first quarter of 2025, up 6,000 tonnes, or 6%, from the fourth quarter of 2024, primarily driven by improved operational reliability and productivity at both of the Company's pulp mills in the current period. Operating income in the Company's paper segment was $5.4 million, compared to $5.1 million in the previous quarter, largely driven by the benefit of favourable timing of shipments around quarter-end as well as the weaker Canadian dollar in the current period. Outlook. While global pulp demand and pulp producer inventory levels are currently stable, looking ahead, global softwood pulp markets are anticipated to remain subdued as increasing uncertainty associated with economic concerns and potential trade disruptions weigh on market conditions. While the Company continues to monitor the trade situation between Canada and the US and is prepared with mitigation plans to mostly offset the impact should tariffs on US shipments be imposed, the Company is also monitoring the broader global trade situation. With its high quality, specialty product offering and market diversification, the Company is positioned to respond to any potential tariffs. The Company remains focused on optimizing its operating footprint, enhancing operational reliability as well as closely managing manufacturing and fibre costs. Looking forward, there remains significant uncertainty with regards to the availability of economically viable fibre within BC. As a result, the Company continues to anticipate that escalating log cost pressures and transportation costs in BC will translate into a higher cost fibre supply for its pulp mills (both for sawmill residual chips and whole log chips). The Company will continue to evaluate operating conditions and adjust operating rates at its pulp mills to align with economically viable fibre supply. These factors could also affect the Company's operating plan, liquidity, cash flows and the valuation of long-lived assets. The relatively muted North American demand for bleached kraft paper experienced at the end of the first quarter is projected to continue through the second quarter of 2025, largely as a result of uncertainty surrounding the trade situation between Canada and the US and the potential for tariffs on US shipments. No major maintenance outages are planned at the Company's pulp mills or at its paper machine for the second quarter of 2025. Looking forward, the Company has revised its maintenance schedule for the second half of 2025. A maintenance outage is now scheduled in the third quarter of 2025 at the Company's Intercon Pulp mill and at its Paper machine. This maintenance outage is projected to reduce both NBSK market pulp production and paper production by 2,000 tonnes each. In the fourth quarter of 2025, a maintenance outage is now scheduled at the Company's Northwood Pulp mill which is projected to reduce NBSK market pulp production by 10,000 tonnes. Additional information and conference call. A conference call to discuss the first quarter's financial and operating results will be held on Friday, May 9, 2025, at 9:00 AM Pacific time. To participate in the call, please dial Toll-Free 1-888-510-2154. For instant replay access until May 23, 2025, please dial Toll-Free 1-888-660-6345 and enter participant pass code 27122#. The conference call will be webcast live and will be available at This news release, the attached financial statements and a presentation used during the conference call can be accessed via the Company's website at Forward-looking statements. Certain statements in this press release constitute "forward-looking statements" which involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. Words such as "expects", "anticipates", "projects", "intends", "plans", "will", "believes", "seeks", "estimates", "should", "may", "could", and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are based on Management's current expectations and beliefs and actual events or results may differ materially. There are many factors that could cause such actual events or results expressed or implied by such forward-looking statements to differ materially from any future results expressed or implied by such statements. Forward-looking statements are based on current expectations and Canfor assumes no obligation to update such information to reflect later events or developments, except as required by law. About Canfor Pulp Products Inc. Canfor Pulp Products Inc. ("Canfor Pulp" or "CPPI") is a leading global supplier of pulp and paper products with operations in the northern interior of British Columbia ("BC"). Canfor Pulp operates two mills in Prince George, BC with a total capacity of 780,000 tonnes of Premium Reinforcing Northern Bleached Softwood Kraft ("NBSK") pulp (including 300,000 tonnes of annual production capacity that, effective August 2024, has been indefinitely curtailed), and 140,000 tonnes of kraft paper. CPPI shares are traded on the Toronto Stock Exchange under the symbol CFX. For more information visit SOURCE Canfor Pulp Products Inc. View original content to download multimedia: Sign in to access your portfolio
Yahoo
08-03-2025
- Business
- Yahoo
Canfor Corp (CFPZF) Q4 2024 Earnings Call Highlights: Strategic Shifts Amidst Market Challenges
Adjusted EBITDA (Lumber Business): $22 million in Q4 2024, down from $64 million in Q3 2024. Adjusted EBITDA (Pulp Business): $12 million in Q4 2024, down $7 million from the prior quarter. Net Debt (Canfor Pulp): $83 million at the end of Q4 2024. Net Cash (Canfor excluding Canfor Pulp and duty loan): Approximately $115 million at the end of Q4 2024. Available Liquidity (Canfor Pulp): $71 million at the end of Q4 2024. Capital Expenditures (Q4 2024): Approximately $137 million, including $6 million for Canfor Pulp. Total Capital Spend (2024): $525 million, including $51 million for Canfor Pulp. Projected Capital Spend (2025 - Lumber Business): Approximately $250 million. Projected Capital Spend (2025 - Canfor Pulp): Approximately $50 million. Warning! GuruFocus has detected 4 Warning Signs with CFPZF. Release Date: March 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Canfor Corp (CFPZF) successfully executed strategic priorities, transforming its business structure and improving its operating cost base. The company has enhanced geographic diversification, with approximately 70% of its lumber business located outside of Canada. Lumber prices have steadily increased, supporting improved profitability, particularly in Western Canada. Canfor Corp (CFPZF) is well-positioned to capitalize on mid- to longer-term lumber demand fundamentals. The company maintains a strong balance sheet, allowing for strategic growth opportunities and share repurchases. 2024 was an extremely challenging year, with difficult decisions to close high-cost assets in British Columbia. The company faces ongoing challenges with elevated duties and tariffs, impacting 20% of its sales. Global lumber demand remains tepid, with continued volatility and market uncertainty expected. There is uncertainty regarding fiber supply in 2025 due to elevated softwood lumber duties and potential additional tariffs. Canfor Pulp experienced a reduction in shipments and adjusted EBITDA due to the wind-down of a production line. Q: Can you discuss the margin profile of your Canadian portfolio after recent cost structure changes? A: Stephen Mackie, Chief Operating Officer, stated that while specific details won't be disclosed, the Canadian business has improved significantly. Alberta continues to perform well, and the closure of higher-cost mills in British Columbia has enhanced the portfolio's performance. Q: Have you adjusted inventory levels in anticipation of tariffs? A: Kevin Pankratz, Senior Vice President of Sales and Marketing, mentioned that there hasn't been a significant shift in inventory due to the recent announcement of tariffs. Any changes are modest and seasonal. Q: Are you seeing any risk of buyer fatigue due to potential tariffs? A: Kevin Pankratz noted that there is no significant long-term buying due to market uncertainty. While there is a slight increase in inquiries, it aligns with seasonal trends rather than panic buying. Q: What are the underlying demand trends and shipment expectations for 2025? A: Kevin Pankratz expects flat demand globally, with shipments projected at 1.6 billion board feet for SPF, 2 billion for SYP, and 1.6 billion for Europe. Retail and home builder outlooks are also flat or slightly reduced. Q: How are you managing the impact of tariffs on your sales? A: Susan Yurkovich, President and CEO, confirmed that 20% of sales are exposed to tariffs, based on a pro forma adjusted for capacity rationalization. This exposure is expected to decrease over time. Q: Can you elaborate on the substitution of SPF with SYP due to tariffs? A: Kevin Pankratz explained that substitution is occurring in specific regions and applications, such as wide-width lumber and machine stress-rated lumber. SPF pricing is expected to strengthen, maintaining a spread over SYP. Q: What are the key components of your 2025 CapEx plan? A: Patrick Elliott, Chief Financial Officer, outlined a $250 million spend for lumber and $50 million for pulp, with over half for maintenance. Strategic capital includes upgrades in El Dorado and other investments. Q: Are there ongoing discussions about a softwood lumber agreement? A: Susan Yurkovich stated that while there is activity in the US and changes in Canada, there is currently no line of sight to discussions on a new agreement. The focus remains on managing duties and tariffs. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
