Interfor Q3 sales miss estimates, net loss widens

Overview

• Interfor Q3 sales miss analyst expectations, reflecting weak lumber market conditions

• Company reports Q3 net loss of C$215.8 mln, impacted by non-cash duty items

• Adjusted EBITDA loss of C$183.8 mln in Q3, includes C$147.4 mln duties expense

Outlook

• North American lumber markets, over near-term, expected to remain volatile due to economic and geopolitical factors

• Interfor to leverage diversified operations to navigate market volatility

• Canadian lumber to remain key supply source for U.S. despite high duty rates

Result Drivers

• NON-CASH DUTY IMPACT - Adjusted EBITDA loss includes C$147.4 mln net duties expense due to duty deposit revaluations

• PRODUCTION CURTAILMENTS - Lumber production reduced due to weak market conditions and economic uncertainty

• INVENTORY PROVISION EXPENSE - Increase in inventory provision expense due to decreased product pricing

Key Details

Press Release: ID:nGNXc6shVX

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