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Net Earnings For Canadian Forest And Paper Industry Drop Even Further: PricewaterhouseCoopers

Vancouver — According to PricewaterhouseCoopers’ (PwC) quarterly net earnings review, aggregate fourth quarter 2008 net earnings of 13 of the largest Canadian forest, paper and packaging companies pl…

Vancouver — According to PricewaterhouseCoopers’ (PwC) quarterly net earnings review, aggregate fourth quarter 2008 net earnings of 13 of the largest Canadian forest, paper and packaging companies plummeted to -$1.3 billion from -$226 million in Q3 2008 and -$438 million in Q4 2007.

Western Canadian companies’ net losses increased across the board to -$641 million in Q4 of 2008 from -$368 in Q4 of 2007, excluding timberWest who actually saw improved results in Q4 2008 due to a $340 million net gain from its fair value adjustment on modification of debt.

Eastern Canadian companies saw losses deepen dramatically from -$106 million in Q4 2007 to -$954 million in Q4 2008. However, it was Domtar who skewed numbers by suffering the most significant drop due to a C$700 million impairment charge.