VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/01/13 -- Canfor Corporation (TSX: CFP) today reported net income attributable to shareholders ("shareholder net income") of $61.9 million, or $0.43 per share, for the first quarter of 2013, compared to $21.3(1) million, or $0.15(1) per share, for the fourth quarter of 2012 and a shareholder net loss of $18.0(1) million, or $0.13(1) per share, for the first quarter of 2012.
The shareholder net income for the first quarter of 2013 included various items affecting comparability with prior periods as well as certain required IFRS accounting adjustments related to the Company's 50% interest in Canfor-LP OSB Limited Partnership, which had an overall positive impact on the Company's results of $8.4 million, or $0.06 per share. After adjusting for such items, the Company's adjusted shareholder net income for the first quarter of 2013 was $70.3 million, up $50.0 million, or $0.35 per share, from an adjusted shareholder net income of $20.3(1) million, or $0.14(1) per share, for the fourth quarter of 2012, and an adjusted shareholder net loss of $24.1(1) million, or $0.18(1) per share, for the first quarter of 2012.
The Company reported operating income of $100.0 million (adjusted $111.0(2) million) for the first quarter of 2013, more than double the $49.0(1) million recorded for the fourth quarter of 2012. Improved results reflected a strengthening U.S. housing market and improved operating performances at the Company's lumber and pulp mills. Lumber sales realizations experienced strong gains during the quarter, with both Western Spruce/Pine/Fir ("SPF") and Southern Yellow Pine ("SYP") products appreciating to levels not seen in almost eight years. The previous quarter results included a one-time accounting gain related to the Company's salaried post retirement benefit plans.
The following table summarizes selected financial information for the Company for the comparative periods(1):
(millions of Canadian dollars, Q1 Q4 Q1except per share amounts) 2013 2012 2012--------------------------------------------------------------------------Sales $ 786.3 $ 700.3 $ 593.8Operating income (loss) $ 100.0 $ 49.0 $ (18.4)Net income (loss) attributable to equity shareholders of the Company $ 61.9 $ 21.3 $ (18.0)Net income (loss) per share attributable to equity shareholders of the Company, basic and diluted $ 0.43 $ 0.15 $ (0.13)Adjusted shareholder net income (loss) $ 70.3 $ 20.3 $ (24.1)Adjusted shareholder net income (loss) per share $ 0.49 $ 0.14 $ (0.18)----------------------------------------------------------------------------------------------------------------------------------------------------
Lumber markets continued to strengthen through the first quarter of 2013 as a result of the recovering U.S. housing market and solid offshore lumber demand. U.S. housing activity reached the highest levels in over five years, with total U.S. housing starts averaging 969,000 units SAAR (seasonally adjusted annual rate), up 7% from the previous quarter. U.S. housing starts ended the quarter at 1,036,000 units SAAR in March, the highest monthly starts since mid-2008. Offshore demand remained strong through the quarter. In contrast, the Canadian housing market showed some weakness in the quarter, falling 26,000 units, or 13%, from the fourth quarter of 2012, to 178,000 units SAAR in the first quarter of 2013. Global softwood pulp markets remained fairly challenging, although conditions improved slightly through the quarter, resulting in modest price gains in all regions.
