The following is a summary of the Canfor Corporation (CFPZF) Q4 2023 Earnings Call Transcript:

Financial Performance:

• Canfor Corporation witnessed a tough year in 2023 due to unfavorable lumber markets, high log costs and reduced shipping volumes but generated solid financial results in Europe and the US South.

• They ended the year with over $350 million net cash to support continued reinvestment in their operations for the next few years.

• The lumber business reported an operating loss of $162 million in Q4 and the US South operations also saw a downturn due to an 18% decrease in the Southern Yellow Pine 2x6 benchmark lumber price.

• European operations managed to contribute $16 million of cash earnings in Q4 and $150 million for the full year of 2023.

• Canfor Pulp reported weak performance with an operating loss of $15 million in Q4 and an adjusted loss of $26 million.

• Total capital expenditures for 2023 amounted to $587 million.

Business Progress:

• Canfor is optimistic about the Repair and Remodeling (R&R) market.

• To improve their competitiveness, they took measures such as permanent closure of a sawmill, temporary curtailments, and completion of construction of a new facility in Louisiana.

• Despite difficulties, Canfor Pulp aims to improve operating performance and cost structure while optimizing the available fiber supply.

• A capital reinvestment plan has been identified at all mills to further support productivity and reliability.

• They have planned capital spending of $400 million and $40 million in the Lumber and Canfor Pulp segments for 2024, respectively.

• The company expects a modest increase in production in 2024, with the majority increase in 2025 and beyond.

More details: CANFOR CORP NEW IR

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