VANCOUVER - Canfor Corp. is reporting a large year-over-year increase in net income in its latest quarter as surging lumber prices helped its revenues to more than double to a record high.
The Vancouver-based company says it earned a record $726.9 million or $5.81 per share in its second quarter.
That's up from $60.7 million or 48 cents per share a year earlier and $427.8 million or $3.42 per share in the first quarter.
Adjusted profit growth was equally strong, rising to $721.2 million or $5.76 per share, from $68.9 million or 55 cents per share in the second quarter of 2020 and $434.2 million or $3.47 per share in the prior quarter.
Revenues for the three months ended June 30 reached nearly $2.5 billion, up from $1.12 billion in the prior year and $1.94 billion in the first quarter.
Canfor was expected to report $5.27 per share in adjusted profits on $2.28 billion of revenues, according to financial data firm Refinitiv.
“Global lumber market conditions remained very strong in the second quarter of 2021, as tight supply coupled with significant demand drove global benchmark lumber prices to new unprecedented highs,” says the company.
“This record pricing, combined with moderately higher shipment volumes, substantially outweighed the impact of modestly higher log costs in Western Canada.”
However, it says market fundamentals should be more challenging in the third quarter because of a sharp correction in benchmark lumber prices across North America in recent weeks, reduced consumer spending on repairs and moderation in new home construction.