Canfor Corporation is reporting it swung back to profitability in the third quarter compared to the same period last year, citing a moderate improvement in lumber markets.
The company posted net income of $22.2 million, or 16 cents per share, for the third quarter compared to a net loss of $21.6 million, or 15 cents per share, in the same period last year. Sales revenue for the quarter came in at $684 million compared to $602 million year over year.
The Vancouver-based company says lumber markets saw moderate improvement in the third quarter, and it noted improved U.S. housing activity and solid demand in China and Japan.
Net earnings came in at $15.3 million, or 11 cents per share after adjusting for items that affected comparability with prior periods, including a foreign exchange loss of $4 million. Canfor was expected to earn five cents per share in adjusted earnings on $696 million in revenues in the quarter, according to analysts polled by Thomson Reuters.
The Vancouver-based lumber, pulp and paper producer has benefited from stronger lumber prices and improving demand in North America and abroad.