Canfor Pulp Products continued its continued profit run, posting a net income of $50.7 million in the first three months of this year.
The company -- which is an important economic driver in Prince George with three pulp mills employing 1,100 people -- had a profit of $178 million in 2010, and was also profitable in 2009 during the global recession, although at a much lower level.
Canfor Pulp said its net income increased seven per cent, on sales of $252.3 million, compared to the previous quarter as a result of lower manufacturing costs, which was offset somewhat by lower shipments and the impact of a stronger Canadian dollar.
The company said that as a result of strong global demand, softwood pulp prices increased to $980 US a tonne in the United States and $980 US a tonne in Europe. Prices also increased in China to $900 US in March from $840 in December 2010.
Pulp prices have climbed since the summer of 2009 when they were at the $700 US level, although they have leveled off since the end of 2010.
Canfor Pulp said the market is expected to remain tight through the first half of this year. Supply is expected to be curtailed due to annual maintenance downtime, coupled with extended outages in Canada to implement several large capital projects funded under the Canadian federal government's $1-billion green transformation program.
Canfor Pulp's Northwood mill will under a shutdown to upgrade a boiler later in the year as part of the program.
