North American forest products companies reporting 1Q 2014 results so far this year include: Canfor, Norbord, Stella Jones, and Catalyst Paper.
Canfor, out of Vancouver, BC, April 29 reported adjusted net income of attributable to shareholders of $45.5 million, or 33 cents per share in 1Q. That compares to $61.9 million, or 43 cents per share, in the same quarter a year earlier.
The company said lumber shipments were down 16 per cent and pulp shipments were down 22 per cent from the previous quarter due to transportation challenges, while lumber production was up three per cent.
Toronto, ON’s, Norbord reported May 2 a steep drop in first-quarter earnings to US$7 million, saying severe winter weather held back the construction of new homes in North America.
The wood panel producer earned 13 cents per share, down from US$67 million, or US$1.51 per share, in the same quarter last year.
The company said the North Central OSB benchmark price averaged $219 per thousand square feet, compared with $245 in the previous quarter and $417 in the same quarter last year.
1Q Forest Company Results
Stella-Jones, based in Montreal, QC, posted its quarterly earnings results on May 5. The company reported $0.33 EPS for the quarter.
Sales in the residential lumber category totalled $17.3 million, versus $17.9 million a year ago, mainly reflecting less favourable weather in Canada. Industrial product sales reached $15.8 million, compared with $11.9 million last year due to the contribution of the PWP assets.
Finally, non-pole-quality log sales amounted to $8.3 million, up from $5.5 million a year ago, as a result of the timing of timber harvesting.
Operating income rose 17.1 per cent to $34.7 million, or 13.5 per cent of sales, versus $29.7 million, or 13.3 per cent of sales, last year.
Catalyst Paper, out of Richmond, BC, recorded EBITDA of $25.7 million compared to $19.1 million in 4Q 2013. Production volumes were more than 2 per cent higher than the prior year average. Sales of $273.9 million were negatively impacted by 8,000 tonnes of paper that were not shipped in the quarter due to the extended container truck driver strike at Port Metro Vancouver.
Catalyst recorded net earnings before specific items of $6.5 million ($0.45 per common share) in 1Q compared to $1.7 million ($0.12 per common share) the previous quarter. Prior quarter results reflected an $86.9 million non-cash impairment adjustment.
Free cash flow improved by $5.7 million over the previous quarter to $11.6 million. Liquidity improved by $15.6 million to $138.2 million, net of restricted cash.