Where East meets West profits fall
September 26, 2005 By Pulp & Paper Canada
The forestry and paper industry may have posted a hefty $61 million loss culminated in the three months that ended …
The forestry and paper industry may have posted a hefty $61 million loss culminated in the three months that ended on June 30th, but a considerable amount of that sum came from eastern Canada. A survey conducted by PricewaterhouseCoopers confirmed that three of the six largest forestry and paper companies in the region reported losses. On the flip side, nine of the biggest industry players in Western Canada earned a combined profit of $40 million.
CBC reported the survey as indicating, "In all regions the wood products segment suffered from decreased demand and lower prices, while the paper segment experienced improved prices. Companies also cited increased energy, labour and raw materials costs as factors impacting earnings, as well as restructuring and other cost-reduction initiatives."
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