The transaction with Springer Creek closed on May 1st.
The U.S. housing sector is projected to continue its recovery through 2013 while Canadian housing starts are projected to slow. In terms of offshore markets, building activity in Japan is expected to gain momentum in 2013 in anticipation of a planned increase in that country's consumption tax in early 2014. Demand for lumber in China is expected to continue to grow in spite of a slowing in demand for other commodities.
Price levels for most commodity items have come off in recent weeks following traditional seasonal patterns. While some further weakening may occur, prices are expected to remain above the levels recorded at the same time in recent years. Interest rates are forecasted to remain low and the Canadian dollar is expected to continue to trade at close to par against the U.S. dollar.
As always, Interfor will maintain its disciplined approach to production, cost control, inventory management and capital spending to help position the Company to deliver above average returns on invested capital as conditions improve. At the same time, Interfor will remain alert to opportunities to position the Company for long-term success.
This release contains information and statements that are forward-looking in nature, including, but not limited to, statements containing the words "will" and "is expected" and similar expressions. Such statements involve known and unknown risks and uncertainties that may cause Interfor's actual results to be materially different from those expressed or implied by those forward-looking statements. Such risks and uncertainties include, among others: general economic and business conditions, product selling prices, raw material and operating costs, changes in foreign-currency exchange rates, and other factors referenced herein and in Interfor's Annual Report and Management Information Circular available on www.sedar.com. The forward-looking information and statements contained in this report are based on Interfor's current expectations and beliefs. Readers are cautioned not to place undue reliance on forward-looking information or statements. Interfor undertakes no obligation to update such forward-looking information or statements, except where required by law.
Interfor is a leading global lumber supplier, with annual capacity of more than 2 billion board feet, and one of the most diverse lines of lumber products in the world. The Company has operations across North America and is headquartered in Vancouver, Canada. For more information about Interfor, visit our website at www.interfor.com.
There will be a conference call on Monday, May 13, 2013 at 8:00 AM (Pacific Time) hosted by INTERNATIONAL FOREST PRODUCTS LIMITED for the purpose of reviewing the Company's release of its First Quarter, 2013 Financial Results.
The dial-in number is 1-866-323-8540. The conference call will also be recorded for those unable to join in for the live discussion, and will be available until May 27, 2013. The number to call is 1-866-245-6755, Passcode 986180.
International Forest Products Limited
First Quarter Report
For the three months ended March 31, 2013
Management's Discussion and Analysis
Dated as of May 10, 2013
This Management's Discussion and Analysis ("MD&A") provides a review of Interfor's financial performance for the three months ended March 31, 2013 relative to 2012, the Company's financial condition and future prospects. The MD&A should be read in conjunction with the interim Condensed Consolidated Financial Statements for the three months ended March 31, 2013 and 2012, and Interfor's Annual Information Form, Consolidated Financial Statements and Annual MD&A for the years ended December 31, 2012 and 2011 filed on SEDAR at www.sedar.com. The financial information contained in this MD&A has been prepared in accordance with IAS 34 Interim Financial Reporting and International Financial Reporting Standards ("IFRS") except as noted herein. In this MD&A, reference is made to Adjusted net earnings. Adjusted net earnings represents earnings before long-term incentive compensation expense (recovery), other foreign exchange gains and losses, other income (expense), restructuring costs, and deferred tax assets not recognized (recognized). The MD&A also makes reference to EBITDA and Adjusted EBITDA. EBITDA represents earnings before finance costs, taxes, depreciation, depletion, amortization, restructuring costs, other foreign exchange gains and losses, and write-downs of property, plant, equipment ("asset write-downs"). Adjusted EBITDA represents EBITDA adjusted for long term incentive compensation expense (recovery), and other income (expense). The Company discloses EBITDA as it is a measure used by analysts and Interfor's management to evaluate the Company's performance. As EBITDA is not a defined term under IFRS, it may not be comparable to EBITDA calculated by others. In addition, as EBITDA is not a substitute for net earnings, readers should consider net earnings in evaluating the Company's performance.
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