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Industry earnings improve: PwC

The North American forest and paper products industry continued its recovery, posting improved net earnings in the third quarter of 2012, according to the latest Net Earnings Summary from PwC.


November 30, 2012
By John Tenpenny

Canadian and U.S. forest and paper products companies reported an overall improvement in net earnings for the third quarter of 2012 compared to the second quarter, with timber, solid wood and packaging/tissue sectors posting generally better results than the pulp and graphic paper manufacturers. Lumber and panel prices were supported through the quarter by the continued improvement in U.S. housing starts. Pulp prices continued to decline through the quarter, but have likely bottomed. European companies’ earnings were down from the second quarter of 2012 reflecting a generally weak European market.

Western Canada
Western Canadian based companies posted net earnings of $775.1 million compared with net earnings of $28.4 million in the second quarter of 2012 and net losses of $243.8 million in the third quarter of 2011.

Eastern Canada
Eastern Canadian based companies posted net earnings of $14.8 million compared to net losses of $36.1 million for the second quarter of 2012 and net losses of $82.8 million in the third quarter of 2011.

United States
US: Ten of the largest US-based forest and paper companies reported net earnings of US $1.3 billion for the third quarter of 2012, up from US $1.1 billion in the second quarter of 2012 and down from US $1.5 billion in the third quarter of 2011.

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Europe
Ten of the largest European based forest and paper companies reported overall earnings of € 275.3 million for the third quarter of 2012, down from earnings of € 482.6 million in the second quarter of 2012, but up from losses of € 122.5 million in the third quarter of 2011.

Click here to read the full report.