B.C. forest industry earnings decline
May 22, 2007 By Pulp & Paper Canada
VANCOUVER, BC — The BC forest and paper industry is now two years into a steady decline in profitability. The 2006…
VANCOUVER, BC — The BC forest and paper industry is now two years into a steady decline in profitability. The 2006 Return on Capital Employed (ROCE) — a key industry metric of financial health — dropped to negative 1.8% from 4.1% in 2005, and was well below the 10 year average of 4%. The ups and downs in lumber and pulp prices translate into volatile B.C. industry earnings. According to findings released today by PricewaterhouseCoopers (PwC) at its 20th annual Global Forest and Paper Industry Conference in Vancouver, in 2006 the B.C. industry lost more than US$500 million, excluding countervailing duty refunds.
For more details, read the PwC report in Pulp & Paper Canadas June issue.
Source: Peter Zvanitajs, PricewaterhouseCoopers
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