Canadian forest and paper companies are turning the corner and returning to profitability, according to PwC’s Global Forest and Paper Industry Net Earnings Summary for the quarter ending December 31, 2013 released Monday.
This survey of public companies shows that most Canadian companies achieved generally positive results in the fourth quarter, particularly when compared to 2012 performance. For example, the net earnings of nine selected Canadian western-based companies increased from $10.6 million in 4Q 2012, to $48.3 million in 4Q 2013. The net earnings of four eastern-based companies went from red to black, improving from a loss of $57.6 million in 4Q 2012 to earnings of $7.9 million in 4Q 2013.
PwC Forest and Paper Earnings Report, 4Q 2013
In the US, improved pricing and productivity gains allowed the nine US-based forest and paper companies in the survey to post strong results, said PwC Monday. Net earnings of US$2.2 billion for 4Q 2013 are up from US$0.9 billion in 4Q 2012.
Western Canada Sawmills
Western Canadian based companies posted net earnings of $48.3 million, compared with net earnings of $85.9 million in 3Q and net earnings of $10.6 million in 4Q 2012.
Eastern Canada Sawmills
Eastern Canadian based companies posted net earnings of $7.9 million in 4Q, compared to net losses of $561.7 million in 3Q 2013 and net losses of $47.6 million in 4Q 2012.
US based forest and paper companies reported net earnings of US$2.2 billion for 4Q, up from US $1.6 billion in 3Q and US $0.9 billion in 4Q 2012.
European based forest and paper companies reported net earnings of €243.7 million for 4Q 2013, down from €526.0 million in 3Q 2013, but an improvement from net losses of €972.3 million in 4Q 2012.
Six of the largest forest and paper companies in Japan posted net earnings of US$321.5 million in 4Q 2013, up from US$282.1 million in 3Q 2013.