Canadian Pulp and Paper Companies Report on Profits

Eleven publicly traded Canadian companies reported combined third quarter loss of negative C$487 million. This was slightly better than second quarter of 2009 at negative $535.8 million and the first quarter of negative C$642.6 million. AbitibiBowater’s loss of –C$411.4 million contributed the most to the Canadian industry’s lack of profit. Only three companies were profitable in 3Q; Domtar C$62.5 million; Cascades C$35 million; and, Canfor Pulp C$11.4 million. All companies declined in sales, generating combined C$6.2 billion, down over 20% versus 2008 but up 1% vs. 2Q. AbitibiBowater (-34%), Catalyst Paper (-48%), Tembec (-28%) and Fraser Papers (-24%) had the worst sales declines in 3Q vs. 2008.