Canfor Q3 profits doubles despite lower lumber prices, increased export duties

The Canadian Press

Freshly cut trees sit stacked before transport to a sawmill in British Columbia, Canada. , Bloomberg

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VANCOUVER - Canfor Corp. (CFP.TO) says its net profit doubled to $125.3 million in the third-quarter despite lower lumber prices.

The Vancouver-based company says it earned 98 cents per diluted share for the period ended Sept. 30, compared with 51 cents per share or $66.2 million a year earlier.

Canfor paid $42.6 million in countervailing and anti-dumping duties, up from $32.1 million in the third quarter of 2017.

Excluding one-time items, adjusted earnings surged to $156.9 million or $1.23 per share, up from $84.6 million or 65 cents per share.

Sales increased 16 per cent to $1.32 billion, from $1.14 billion.

The company was expected to earn 72 cents per share in adjusted profits on $1.35 billion of revenues, according to Thomson Reuters Eikon.

North American lumber demand has remained relatively stable, with U.S. housing starts averaging about 1.2 million units on a seasonally adjusted basis, up four per cent from a year ago.