Interfor Corp. Posted Net Loss in Q2 2019

SEATTLE (Scrap Monster): Interfor reported net loss of $11.2 million or $0.17 per share during the second quarter of 2019. This compares with the net earnings of $63.7 million or $0.91 per share in Q2 last year. The adjusted net loss in Q2 ’19 was $16.2 million. It must be noted that Interfor had reported adjusted net earnings of $68.9 million in second quarter 2018. The adjusted EBITDA in Q2 this year was $12.6 million on sales of $481.3 million.

According to company press release, the lumber production totaled 647 million board feet, more or less unchanged over the prior quarter. The production in the U.S. South increased marginally to total 320 million board feet. The B.C and U.S. Northwest production totaled 187 million board feet and 147 million board feet respectively. The lumber shipments totaled 674 million board feet during the quarter. Also, the lumber inventories saw a quarter-on-quarter reduction from 229 million board feet to 211 million board feet as at end of June 30, 2019.

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The net debt stood at $198.2 million. The company generated $9.9 million of cash flow from operations. The capital investments during the quarter totaled $64.6 million in Q2 this year. Also, Interfor expensed $10.8 million in softwood lumber duties.

The company announced significant progress on its previously announced Phase I and II strategic capital projects in the U.S. South. The Phase I projects are now in ramp-up phase. The Phase II projects are on track for completion in various periods over the period from 2019 to 2022.

Interfor announced appointment of Christopher Griffin as its new director, thus making the total number of directors to eleven.