Inflation, rising interest rates cut into lumber sales

By Nelson Bennett
Business in Vancouver
October 27, 2022
Category: Business & Politics
Region: Canada, United States

Inflation and its cure, rising interest rates, are beginning to hit the bottom lines of two of B.C.’s biggest forestry companies. West Fraser and Canfor released third quarter financials this week that show both companies still making a good profit on lumber and pulp sales, but with those profits taking a sharp dip compared to previous quarters, thanks to a decline in new home construction in the U.S. Both companies also report high log costs in B.C. and railway bottlenecks as factors affecting their bottom lines. …B.C.’s other large lumber producer, Interfor, has not released its third quarter financials yet, but has announced it will curtail production in the fourth quarter, due to falling lumber prices. The company plans to reduce production by 200 million board feet in the fourth quarter.”

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