Interfor caps off blockbuster year on a sour note as fourth-quarter profit plunges

BURNABY, B.C. – Interfor Corp. is reporting a near tripling in profits last year despite a weaker fourth quarter in which net earnings were cut by more than half.

The Burnaby, B.C., lumber producer says it earned $819 million or $12.88 per basic share in 2021, up from $280.3 million or $4.18 per share in 2020.

Adjusted profits were also strong at $829.1 million as revenues surged 50.6 per cent to $3.29 billion from $2.18 billion a year earlier and by 75.4 per cent from $1.88 billion in 2019.

The year ended on a sour note with net earnings falling by more than half to $69.7 million or $1.15 per basic share in the fourth quarter, compared with $149.1 million or $2.24 per share in the final quarter of 2020.

Adjusted profits were $1.29 per share, five cents per share above analyst forecasts but down from $2.47 per share in the fourth quarter of 2020.

Revenues for the three months ended Dec. 31 were $675.9 million, up from $662.3 million in the prior-year quarter as lumber production hit a record of 758 million board feet. The average selling price in the fourth quarter was $822 per thousand board feet, down from $842 a year earlier, but up from $744 in the third quarter.

Interfor expects its acquisition of Eacom Timber Corp. with seven sawmills, 985 million board feet of production capacity as well as an I-joist plant and a remanufacturing facility will close in the coming weeks.

This report by The Canadian Press was first published Feb. 3, 2022.

Companies in this story: (TSX:IFP)

Note to readers: This is a corrected story. An earlier version incorrectly stated Interfor’s average selling price and the movement in the price.