CFPUF
VANCOUVER, BRITISH COLUMBIA, Jul 21, 2010 (MARKETWIRE via COMTEX) --
Canfor Pulp Income Fund (the Fund) (TSX: CFX.UN) announced today
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.
Softwood pulp markets remained tight through the second quarter of
2010 as steady demand and continued tight supply of global softwood
pulp supported further price increases. The NBSK pulp list price in
North America during March 2010 was US$910 per tonne with monthly
price increases through the second quarter of 2010 resulting in a
price for June 2010 of US$1,020 per tonne.
The NBSK pulp list price for July is unchanged from June at US$1,020
per tonne for North America. Although the global softwood
supply/demand balance still favours producers, downward pressure on
pricing is currently being exhibited in the market in China. A
reduction in market pulp consumption from Asia combined with a
typical seasonal slowdown during the summer months, may exert
continued market pressure to reduce NBSK pulp list prices over the
next three to six months.
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