VANCOUVER – Canfor Corp. (TSX:CFP) says its second-quarter profit more than doubled to $4.5 million as stronger lumber prices and improving demand from North America and abroad helped boost the bottom line.
The Vancouver-based lumber, pulp and paper producer said its earnings amounted to three cents during the quarter, up from $2.1 million or a penny per share in the second-quarter of 2011.
Sales rose to $ 700.9 from $619.1 in the year-earlier period.
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“The improvement in lumber prices and earnings reflected a modest increase in construction activity in North America and continued solid offshore demand for Western SPF lumber products,” said Canfor’s president and CEO, Don Kayne.
The company was hit by weaker results at its partially-owned Canfor Pulp Products Inc. (TSX:CFX) which said Wednesday its second-quarter net income slipped 93 per cent to $3.3 million as the company was hit by outages and shutdowns.
The Vancouver-based pulp and paper producer said its second-quarter earnings amounted to five cents per share, down from profit of $48.2 million or 68 cents per share in the second quarter of 2011.
Canfor Corp. is primarily involved in the lumber business, with production facilities in B.C., Alberta, Quebec and the United States.
It also has a 50.2 per cent interest in the pulp and paper business owned by Canfor Pulp Limited Partnership; a 50 per cent interest in the oriented strand board business of Peace Valley OSB and owns a bleached chemi-thermo mechanical pulp mill.
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