Interfor reported net earnings of $11.4 million in the fourth quarter of 2013, compared to net losses of $0.1 million in the third quarter and $3.8 million in the fourth quarter of 2012.
EBITDA, adjusted to exclude the effects of long-term incentive compensation and other items, was $36.2 million compared with $24.6 million in the third quarter of 2013 and $19.3 million in the fourth quarter of last year.
Interfor's lumber production in the fourth quarter was a record 470 million board feet, up 5% from the third quarter of 2013. Lumber sales, including wholesale and agency volumes, were a record 500 million board feet, up 12% versus the prior quarter.
Interfor's 2013 annual results
For 2013, the company realized $1.1 billion of total sales, up 30% from $849 million in 2012, driven by the sale of nearly 1.8 billion board feet of lumber at an average price of $495 per mfbm. Lumber sales volume and average selling price increased 23% and 12%, respectively, over 2012.
Higher North American pricing, supplemented by higher realizations in China and Japan and a weaker Canadian dollar, contributed to a $55 per mfbm average selling price improvement from 2012, Interfor reported. The 329 million board feet increase in lumber shipments from 2012 primarily reflects the addition of four of the company U.S. Southeast sawmills, which contributed sales of 247 million board feet, and increased production from the B.C. Interior and U.S. Pacific Northwest operations.
Lumber shipments to China increased by 18%, as 2012 was affected by an oversupply in late 2011 and interest rate increases by the Chinese government. China remained a significant market for the company, accounting for 17% of total lumber sales volume in 2013 (2012 - 17%). Lumber shipments to Japan improved marginally over 2012 levels.
Log sales of $136.6 million represents an increase of $22.7 million, or 20%, compared to 2012. A slight decline in sales volume from Interfor's B.C. operations was more than offset by a 22% increase in average selling price to $88 per cubic metre, reflecting improved lumber markets and a shift in mix to offshore markets.
The company's wood chips and other residual products revenue increased 4% from 2012 to $72.4 million, due mostly to higher volumes from increased sawmill production. Ocean freight and other revenues decreased by $10.8 million from 2012 to $23.9 million, due mainly to lower ocean freight resulting from decreased break bulk volumes, Interfor concluded in its annual financial report.
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