The following is a summary of the Canfor Corporation (CFPZF) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Canfor Corporation reported an operating loss of $57 million in its lumber business, primarily due to weak lumber pricing and supply issues in British Columbia.

• There was a slight recovery of $30 million from a previously recorded inventory write-down and a noncash duty expense of $15 million.

• European operations generated a cash earning of $31 million, demonstrating the value of their diversification strategy.

• Canfor Pulp division improved its losses from the previous quarter, with an adjusted operating loss of $16 million.

• Despite losses, the company's balance sheet remains robust to support reinvestment in the lumber business.

Business Progress:

• The company is continuing to diversify its operations worldwide, with an increased focus on the south of the US and Europe.

• There are plans for expansion of the Fulton facility and consolidation of Alabama operations to increase efficiency and sustainability.

• Canfor announced the acquisition of Resolute Forest's El Dorado lumber facility to create operational synergies and increase production capacity.

• Canfor's 2023 sustainability report revealed the company's focus on safety, community relationships, diversity, and climate action.

• Despite current market conditions, the company will continue to reinvest, with a planned expenditure of $450 million in the lumber segment in 2024.

• Efforts are being made to manage timber supply economically and mitigate the impact of wildfires, especially in BC.

• Market prices on the Canfor Pulp side are expected to increase, indicating modest growth potential.

More details: CANFOR CORP NEW IR

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