Canfor reports $560,000,000 in operating losses during third quarter of 2024

FORT ST. JOHN, B.C. — The company that announced plans to close Fort St. John’s sawmill last month has released its third-quarter financial results for the year, which include an operating loss of $560 million.

According to Canfor’s report, that figure includes a $100.3 million “asset write-down and impairment” charge incurred after it announced the closure of multiple British Columbia sawmills, including the ones in Fort St. John and Vanderhoof.

This has reportedly led to a $350 million loss for Canfor’s shareholders – roughly $2.96 per share.

“During the current period, [Canfor’s] British Columbia operations continued to encounter operational challenges, including limited access to economic fibre, weak lumber market conditions, rising operating costs, increased export tariffs to the United States, as well as various regulatory complexities,” the report reads.

“After a thorough review of these operational constraints, [Canfor] made the difficult decision to permanently close its Plateau [Vanderhoof] and Fort St. John operations located in northern BC, following an orderly wind down in the fourth quarter of 2024.”

The two mill closures are expected to impact roughly 500 direct jobs, including 220 in Fort St. John. The closure announcement also came with a $38.6 million loss attributed to “restructuring costs.”

Despite struggles in BC and the rest of North America, the company reported “positive results” in Alberta and Europe.

“This was another extremely challenging quarter for our lumber business,” said President and Chief Executive Officer Don Kayne. 

“While Alberta and Europe delivered positive results, our North American operations continued to face a persistently weak pricing environment.”

Kayne says Canfor intends to move forward with the closure. “We sincerely regret the impact these decisions have on our employees, their families, contractors, and the businesses that support our operations and the local community,” he said.

The decision to close the mills drew criticism from local politicians and the union representing hundreds of at-risk employees. 

Later in September, Brink Forest Products, a company based in Prince George, announced that it had submitted a bid to buy the two mills.

The quarterly report contained no mention of Brink’s bid. Canfor will host a conference call for investors to discuss the report on Monday, October 28th, starting at 8:00 a.m.

To view the full report, look below.