GreenFirst Foresees Near-Term Volatility in North American Lumber Prices
Rubber and Wood | 2022-03-28 21:45:32
The cost of sales stood at $131.2 million, whereas the selling, general and administrative expenses totalled $5 million.
By Paul Ploumis
SEATTLE (Scrap Monster): Toronto, Ontario-headquartered GreenFirst Forest Products Inc. announced profitable fourth quarter of 2021. It must be noted that it was the company’s first full quarter results after operating its newly acquired forest products business.
The company recorded net income of $8.0 million or $0.04 per share for the fourth quarter of 2021. Also, it reported adjusted EBITDA of $18.4 million and net sales of $161.6 million during the three-month period ended 31st December, 2021. The cost of sales stood at $131.2 million, whereas the selling, general and administrative expenses totalled $5 million. The total liquidity as on end-2021 was $83.2 million.
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Commenting on its future outlook, the company expects strong North American home construction and repair and remodelling demand for lumber, although anticipated hike in interest rates in 2022 may likely moderate this demand. The uncertainty around Covid-19 will remain throughout 2022. Also, it expects the North American lumber prices to continue to be volatile, but to remain above historical trends.
Rick Doman, CEO, GreenFirst said that the company reached profitability during the quarter and have successfully integrated the acquired operating mills. The company intends to make strategic capital investments with the aim of reducing the cost of production and increasing its production capacity, he added.
