Despite a housing correction and weakening economic data, corporations are posting positive Q2 results. This includes: Finning International; BlueLinx Holdings; Clearwater Paper; and US tissue manufacturers (in general). In other Business news: Canfor’s Taylor Mill curtailment will continue until transportation levels return; the Tolko/Jasper Lumber partnership secures an Alabama grant; Collins appoints Tom Insko as its new CEO; and Sappi announces paper price increases.
In Forestry/Climate news: Manitoba signs MOUs with two Cree Nations; wood pellets role in Canada’s low carbon economy; California forestry takes heat over the McKinney Fire; a BC mountain resort uses snow-making machines to protect its infrastructure and wildfire updates from Penticton BC, and Nebraska.
Finally, the survey says: reading is up and physical books are still king!
Kelly McCloskey, Tree Frog Editor
VANCOUVER — Finning International reported second quarter 2022 results. The company reported revenue of $2.3 billion and net revenue of $2.0 billion were up 24% and 18%, respectively, from Q2 2021, reflecting strong market conditions in all regions, backlog deliveries, and continued execution of our product support growth strategy. Earnings before interest and taxes (EBIT) was was up 39% from Q2 2021, driven primarily by higher revenues and improved operating leverage. EBIT as a percentage of net revenue was 10.0% in Canada and 10.1% in South America. UK Ireland’s EBIT as a percentage of net revenue was 6.4%, reflecting structural improvement in profitability, including the addition of Hydraquip. …”We are pleased with our strong execution and performance in the second quarter, which demonstrates our significantly improved earnings capacity,” said Scott Thomson, president and CEO of Finning International.
Historically speaking, the Fed’s inflation-fighting playbook always delivers a particularly hard hit to the U.S. housing market. When mortgage rates spike—which happens as soon as the Fed goes after inflation—those payments spike for new borrowers. That explains why as soon as mortgage rates rose this spring, the housing market slipped into a housing cool down. But that housing correction could soon lose some steam. Over the past week, mortgage rates have declined fast. As of Tuesday, the average 30-year fixed mortgage rate sits at 5.05%, down from June, when mortgage rates peaked at 6.28%. Those falling mortgage rates give sidelined homebuyers immediate relief. What’s going on? As 
According to RISI: US parent roll production increased by 30k tons y/y to 775k tons, while tissue mill capacity was down 10k tons y/y to 831k tons, increasing the US industry operating rate to 93.3% vs. 88.6% last year. …At-home shipments increased by 18k tons y/y, with volumes of bathroom tissue and towel up y/y, while volumes of napkins and facial tissue were down compared to last year. …Away-from-Home (“AfH”) converted product shipments were up 1.2% y/y. …Apparent consumption increased by 4.1% y/y to 803k tons (~32k tons higher y/y), which was greater than the 2.8% y/y increase in converted product shipments. …Total tissue exports decreased by 3.7k tons m/m to 45.1k tons in May, with exports to Mexico down 6.3% m/m, Canada down 2.4% m/m and Other down 24.8% m/m. …Total US tissue imports increased by 30.8% y/y and 15.3% m/m in May.
Western readers still prefer reading from ‘real’ books, rather than from e-books or listening to audiobooks, according to a survey by renewable pulp and paper manufacturer Stora Enso. Nearly two-thirds (65%) of people who buy books, e-books, or audio-books said they like physical books best. One in five (21%) preferred e-books, and just 14% opted for audiobooks. The survey, which covered the UK, France, Germany, and the US, also found that many people had been spurred into reading more because of the pandemic – an effect particularly notable in the US and UK, where more than two-thirds (70%) said they now read more. Alongside this rise in demand has come a greater recognition of the industry’s need to decarbonise, according to Lisa Faratro, director of environment and sustainability at commercial printers the CPI Group.
VICTORIA – The Forest Practices Board will audit the forest planning and practices of Lake Babine Nation Forestry Ltd. on First Nations Woodland Licence (FNWL) N21, located near Burns Lake, during the week of Aug. 8, 2022. Auditors will examine whether timber harvesting, roads, silviculture, fire protection and associated planning carried out between Aug. 1, 2020, and Aug. 12, 2022, met the requirements of the Forest and Range Practices Act and the Wildfire Act. The audit area is in the Nadina Natural Resource District, north of the Village of Burns Lake, in the territory of the Lake Babine Nation. The licence has three separate operating areas on the west side of Babine Lake, covers 36,500 hectares and has an allowable annual cut of approximately 74,000 cubic metres. First Nations Woodland Licences are an area-based, long-term forest tenure unique to First Nations.
NEW ZEALAND — A group of concerned New Zealanders has launched a campaign urging the Government to drop the proposed ‘biofuels obligation’ set to begin on 1 April 2023. The ‘Don’t Burn Our Future’ advocacy group says the Government’s plan to legally require fuel suppliers to add biofuel to petrol and diesel is at best naïve and at worst ‘pure greenwashing.’ Campaign Coordinator Jake Roos says, while the measure may sound like a solution to reducing New Zealand’s reliance on fossil fuels, that couldn’t be further from the truth. ‘Just because something has ‘bio’ in its name doesn’t mean it’s green. The proposal will do nothing to benefit the environment. Instead, it is likely to increase greenhouse gas emissions and lead to a host of other negative impacts on the planet, as well as further driving up the cost of fuel and food.’
