Canfor Pulp Income Fund announced recently its second quarter 2010 results as well as the results of Canfor Pulp Limited Partnership (the Partnership) in which the Fund has a 49.8%
ownership.
The Partnership reported record sales of $247.6 million and net income of $43.1 million, or $0.60 per unit, for the quarter ended June 30, 2010. The Partnership generated record EBITDA of $63.7 million in the quarter. The Fund
reported net income of $22.1 million, representing the Fund’s share of the Partnership’s net income and a future income tax recovery of $0.7 million. In the quarter, the Partnership generated adjusted distributable cash of $62.5 million, or $0.88 per unit, and the Partnership and the Fund declared distributions of $0.52 per unit.
Improved Partnership results compared to the first quarter of 2010 were attributable to higher prices for the Partnership’s pulp and paper products, partially offset by the stronger Canadian dollar, lower shipments and higher
freight costs.
The Partnership’s operations ran well in the quarter achieving production records for both total tonnes and average daily production rate. A scheduled maintenance outage was completed at the Intercontinental Pulp Mill in the second quarter resulting in approximately 10,000 tonnes of reduced production. A scheduled maintenance outage is planned for the third quarter at the Northwood Pulp Mill with an estimated 10,000 tonnes of reduced production, with no further maintenance outages planned for the fourth quarter of 2010.
