This net earnings summary provides a regional comparative analysis of the forest and paper sector's financial performance for the three-month period ending March 31, 2009.
The global recession and weak demand for forest products continued to ravage the industry, particularly in British Columbia. And the lower Canadian dollar was not enough to offset reduced sales volumes and prices faced by Canada's 14 largest forest and paper companies. When compared to the same quarter in 2008, their net losses grew by $91 million for a total loss of $480 million.
During 2009's first quarter, western Canadian companies lost $314 million, virtually unchanged from one year ago. Of the nine largest public forest companies in the region, Catalyst Paper was the only corporation that reported positive earnings. Six of the eight remaining companies reported greater losses compared to the first quarter of 2008.
Eastern Canadian companies' losses more than doubled to $166 million in this quarter compared to $77 million last year. Cascades was the only company of the five largest public forest companies in the region that reported positive earnings in the quarter.
Ten of the largest public US-based forest and paper companies posted cumulative losses of US $63 million 2009's first quarter. Four of the 10 companies reported positive and improved earnings amidst a climate of economic uncertainty and challenging housing market conditions. Markets for tissue and hygiene products typically experience fewer demand fluctuations during recessionary periods.
Ten of the largest European-based companies incurred losses totaling € 389 million, down from earnings of € 317 million reported during 2008's first quarter. The results reflect a struggling pulp and paper market impacted by declining demand and prices at the end of the third quarter in 2008.
posted by srikanth...july6
No comments:
Post a Comment