Canfor records large operating loss for first quarter of 2019

Canfor has released its first-quarter financial numbers of 2019 and the numbers show a decline.

An operating loss of $70 million has been reported by the company with an adjusted operating income of $5 million.

The adjusted shareholder also reported a net loss of $37 million ($0.29) per share. 

Canfor says they also completed the acquisition of 70 per cent of the Vida Group of Sweden. 

Although they reported a large loss for the first quarter of this year, it's an improvement from the $79.1 million loss reported in the same time period of 2018.

Canfor says the improvement of $9.2 million came from improved operating earnings for the pulp and segment as well as one month of earnings from Vida after the closing of the deal on Feb. 28, 2019. 

Canfor Pulp Products Inc. Announces First Quarter 2019 Results and Quarterly Dividend -> https://t.co/MVVRtABoGu

— Canfor (@CanforCorp) May 1, 2019

During the first quarter of this year, Canfor also put curtailments on log supply as well as cost pressures here in B.C. because of what the company calls weak market conditions. 

As a result, Canfor says they took production curtailments of 95 million board feet in the first quarter of 2019 plus the 100 million board feet of curtailment that was taken in the final quarter of last year. 

On Nov. 1 of 2018, the company announced they would start curtailment at sawmill locations across Canada (13 in total) including Prince George. 

The following month, Canfor announced that the curtailment would be extended due to high log costs and log supply constraints.

And last month, the curtailment was announced again, this time with Canfor saying it would be temporary as of April. 29. 

Canfor's production output will be reduced by roughly 100 million board feet.