Grim third quarter results for forestry sector

Pulp & Paper Canada
December 15, 2009
By Pulp & Paper Canada

The third quarter provided much of the same for Canadian forest and paper companies – weak demand and low prices for commodity products, PricewaterhouseCoopers has reported. Overall, the industry suffered a $632 million loss, $80 million more than the $552 lost in the third quarter of 2008.


The nine largest public forest and paper companies in the western part of the country posted losses of $230 million. Western Canadian companies benefited from pre-tax foreign exchange gains of $164 million on the translation of the U.S dollar denominated debt. Four of the nine biggest western forestry companies had positive earnings, while seven reported improved results. However, these ameliorations are primarily due to fluctuations in non-operating results.


In Eastern Canada, the picture is grimmer, with the six largest public forest and paper companies dealing with a loss of $422 million, representing an additional $100 million downward slide from the corresponding quarter in 2008.


PwC’s performance improvement practice leader for the global forest and paper industry Craig Campbell notes the quarterly results paint a dire picture, but points to the upward trend in pulp prices as a positive note for the sector.

“Tough times have sparked some innovation in the sector,” Campbell adds. We are seeing some forest products producers holding on by tweaking operations to run more efficiently at lower throughputs, taking advantage of government incentives and other programs to reduce energy consumption and others looking at potential new revenue streams from bio-energy products.”      

Add comment

Note: By submitting your comments you acknowledge that Pulp and Paper Canada has the right to reproduce, broadcast and publicize those comments or any part thereof in any manner whatsoever. Please note that due to the volume of e-mails we receive, not all comments will be published and those that are published will not be edited. However, all will be carefully read, considered and appreciated.

Security code

Subscription Centre

New Subscription
Already a Subscriber
Customer Service
View Digital Magazine Renew

Most Popular

Latest Events

TissueCon 2019
October 1-4, 2019
BLRBAC Fall 2019 Meeting
October 14-16, 2019
October 27-30, 2019

We are using cookies to give you the best experience on our website. By continuing to use the site, you agree to the use of cookies. To find out more, read our Privacy Policy.