Tough times for the forest products industry!

A report published Tuesday by PricewaterhouseCoopers found that the Canadian forest and paper industry lost $632 million in the third quarter of 2009, exceeding the $552 million reported in the same quarter of 2008.

"The third quarter financials for the sector are grim, adding to the tough times experienced over the last several years," said Craig Campbell, leader of consultant PricewaterhouseCoopers' performance improvement practice for the global forest and paper industry.

Canada

Western Canadian lumber firms fared better than those in Eastern Canada. The nine largest public forest and paper companies in the west posted losses of $210 million for the third quarter of 2009, compared to losses of $230 million reported for the prior year period.

In Eastern Canada, the six largest public forest and paper companies reported losses of $422 million for the third quarter of 2009, a further decline from the losses of $322 million for the comparable period of 2008, the report found.

United States

U.S. conditions seem better. Ten of the largest American forest and paper companies posted earnings of $1.2 billion US in the third quarter of 2009, up almost $500 million US from earnings of $733 million US in the same period of 2008.

Europe

Ten of the largest European-based forest and paper companies incurred overall losses of $689 million US in the third quarter of 2009, comparable to losses of $715 million US reported in the third quarter of 2008.

Japan

The ten largest lumber firms in Japan and the developing world posted profits of $453 million US in the third quarter of 2009, up from $280 million US worth of losses in the third quarter of 2008.

Source:
Forestry losses worsening: report (CBC)

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Issue date: December 9, 2009

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