PwC REPORTS ON Q3
PricewaterhouseCoopers (PwC) released its Global Forest and Paper Industry Net Earnings Summary this week for the period ending September 30th 2011.
In the summary, PwC noted that the majority of Canadian forest and paper companies posted lower earnings for the third quarter of 2011 compared to the same period in 2010. They said the results reflect weak lumber demand, sagging pulp prices and a strong Canadian dollar.
“The struggling US economy and housing market, in addition to slowing demand from China, negatively impacted the lumber and solid wood segment of the industry,” reported PwC. “Northern Bleached Softwood Kraft pulp (NBSK) prices remained strong in the third quarter, however pulp prices continue to come off the record high levels reached earlier this year. The relative weakening of the Canadian dollar to the US dollar in the quarter provided some support to earnings.”
In western Canada, forest and paper companies reported combined net losses totaling $234.2 million for the quarter. This compares to profits of $178.8 million for the same period in 2010. West Fraser, Mercer International and Western Forest Products were all in the black, while Interfor reported earnings of $0.0 for the quarter. Conifex, Canfor, Miller Western, Ainsworth and Catalyst Paper all reported losses for the quarter with Catalyst having the largest loss at $205.7 million.
Companies in eastern Canada faired better reporting combined earnings of $31.9 million, which compared to combined net losses of $650.3 million for the third quarter of 2010. Domtar topped the list in the third quarter of 2011 with net earnings of $114.7 million. EACOM, Norbord, Tembec, Cascades, and AbitibiBowater (now Resolute Forest Products), all reported net losses for the quarter.
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