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HomeNewsInterfor reports net loss of $41 million in Q1

Interfor reports net loss of $41 million in Q1

The company that owns sawmills in Grand Forks and Castlegar posted a net loss of $41.3 million in the first quarter and says it expects continued volatility in lumber markets.

Interfor says lower prices reflected “softened demand” driven by higher interest rates. By comparison, in the first three months of 2022, the company had net earnings of $397 million.

“North American lumber markets over the near term are expected to be volatile as the economy continues to adjust to inflationary pressures, elevated interest rates, labour shortages and geo-political uncertainty,” the company wrote in its quarterly statement.

Production was up 157 million board feet over the fourth quarter of last year but Interfor said that was mostly the result of a decrease in production curtailments and the first full quarter of contribution from two sawmills the company acquired late last year. Production was reduced 17 per cent in the last three months of 2022.

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In addition to its local operations, the company has operations in eastern Canada as well as in the U.S.

Interfor noted major capital investments in the first quarter included a new planer at the Castlegar operation.

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