Canfor Corp., one of the world’s largest forestry companies, sees potential acquisition opportunities in the U.S. South as smaller companies struggle in the wake of carnage left by new softwood lumber duties.
“We’ve got an appetite for [mergers and acquisitions],” Canfor CEO Don Kayne said on a conference call Thursday to discuss the company’s slightly better-than-expected first quarter results.
“Clearly now with the valuations and so forth, we’re closely watching the market … so we’re just evaluating all those opportunities that may come up on an individual basis.”
The Vancouver-based company reported Wednesday first-quarter net income of $66.1 million, or 50 cents per share, more than doubling the $26 million, or 20 cents per share it reported in the first quarter of 2016.
However, its quarterly results were overshadowed by news this week that it has been slapped with a 20.26 percent countervailing duty on softwood lumber by the U.S. government, as part of the latest escalation of an ongoing dispute over what U.S. producers believe to be unfair subsidies for their Canadian competitors.
From the Financial Post: http://business.financialpost.com/business/canfor-corp-eyes-acquisitions-amid-u-s-lumber-duties-carnage