PwC Q1 2010 REPORT
PricewaterhouseCoopers (PwC) released its Global Forest and Paper Industry Net Earning Summary for the first quarter of 2010 this week and the results “were better than expected.”
The report said average prices for oriented strand board (OSB) and lumber increased 40 and 75 per cent respectively over price levels in the same period in 2009. PwC cited supply shortages created by market and weather related production curtailments for the surge in prices.
The report also noted that the benefits of the price increases in Q1 2010 were partially offset by the strengthened Canadian dollar and that the Loonie had appreciated by 20 per cent against the U.S. Greenback compared to Q1 2009. PwC also said Canadian companies benefited from pre tax foreign exchange gains of $61 million on the translation of U.S. dollar denominated debt in Q1 2010. That compared to losses of $83 million for the first quarter of 2009.
Western Canadian companies faired the best in the country for the first quarter of 2010 with the top nine companies realizing a combined loss of just $3 million compared to a loss of $326 million in Q1 2009. Five of the top nine were profitable with Canfor topping the list at $33 million compared to a loss of $70 million for the same period in 2009. West Fraser, Ainsworth, Western, and Millar Western all reported positive earnings for the quarter, while Interfor, Mercer, TimberWest and Catalyst were in the red.
In eastern Canada, the top five companies reported combined negative earnings of $466 million for Q1 2010, compared to combined negative earnings of $417 million for the same period in 2009. The eastern numbers were heavily influenced by a $521 million loss for Q1 2010 at AbitibiBowater, which is under creditor protection in both Canada and the U.S. Domtar reported positive earnings of $60 million for Q1 2010, while Tembec and Cascades reported earnings of zero for the first quarter of 2010. Norbord reported negative earnings of $5 million.
|
