VANCOUVER - Canfor Pulp Products Inc. (TSX:CFX) has cited weaker prices and a stronger dollar for a sharp decline in its first-quarter profit and revenue.
The Vancouver-based pulp and paper producer, which has its operations in the B.C. Interior, said its net income for the quarter ended March 31 was $10.3 million or 13 cents per on revenue of $220 million.
That compared with net income of $50.7 million or 71 cents per share on $252.3 million in revenue in the comparable period of 2011.
"Results were impacted by lower market pulp prices and a strengthening Canadian dollar," Canfor said in a release.
"The decline in pulp prices was partially offset by lower unit manufacturing costs and strong shipments of the company's pulp and paper products.
Canfor Pulp was created several years ago when it was partially spun out as a separate business from Canfor Corp. (TSX:CFP), with the two companies jointly owning the Canfor Pulp Limited Partnership.
In March, the relationship between the various entities was changed with the result that Canfor Corp. ended up with 50.2 per cent of Canfor Pulp's equity and Canfor Pulp became sole owner of the partnership.
Canfor Pulp's board announced Monday that it has declared a quarterly dividend of 22 cents per share, payable to non-Canfor shareholders on May 11. Under the corporate restructuring, Canfor Corp. waived its right to receive the dividend.
On March 2, Canadian Forest Products Ltd. exchanged about 35.8 million units in Canfor Pulp Limited Partnership for an equivalent number of Canfor Pulp shares.
As a result of the exchange, Canfor Pulp increased its interest in the partnership from 49.8 to 100 per cent, and Canfor Corp. acquired a 50.2 per cent interest in the pulp company.