Lumber and pulp producer Canfor Corp. has recorded year-end loss of $294 million.
The outcome, reported in its quarterly report issued Thursday, is in contrast to the $608 million in operating income the company gained over 2018 - the highest it had achieved in 10 years.
"In contrast to the record-high lumber and pulp prices seen in 2018, weaker than anticipated global lumber and pulp demand for much of 2019 in combination with excess inventory levels gave rise to a sharp drop in market pricing for both lumber and pulp products in the current year," the company said.
"The deterioration in market conditions, in combination with ongoing fibre supply challenges and significant log cost increases in British Columbia resulted in extensive temporary and permanent sawmill curtailments across B.C., as well as summer curtailments at Canfor Pulp."
Adjusted for countervailing and anti-dumping duties, inventory write-down recoveries and restructuring costs related to mill closures and curtailments, the loss stood at $92 million, compared to a gain of $814 million over the previous year.
On Feb. 3, the U.S. Department of Commerce said Canadian lumber producers could see their duties cut in half by August. If that happens, Canfor would be see its deposit rate drop from 20.52 per cent down to 4.63 per cent and a recovery adding up to $140.6 million but only once the litigation has been settled, the company said.
