Interfor Announces Additional Curtailments for Remainder of the Year

Interfor announced its Q2 earnings on Thursday, which included a list of updated and additional planned production curtailments.

Notable items include:

• In Q2, lumber production totaled 1.0 billion board feet, representing a 35 million board foot decrease over the prior quarter. This decrease partially reflects the temporary production curtailments announced on April 30th and the indefinite curtailment of the Philomath, Oregon, sawmill.
• In response to the ongoing market weakness, Interfor plans to temporarily reduce its total lumber production by approximately 280–350 million board feet between August and December of 2024, representing 15–18% of its normal operating stance.
• Interfor announced $6.6 million of discretionary investment focused mainly on the multi-year rebuild of the Thomaston, Georgia, sawmill.
• On June 27th, the company sold property and assets of the former Philomath, Oregon, sawmill for cash consideration of US$15.0 million. A net non-cash charge of $4.3 million was recorded in conjunction with the disposition.
• The company sold Coastal BC forest tenures totaling approximately 50,000 cubic meters of allowable annual cut (AAC) and related assets and liabilities for proceeds of $8.3 million and a gain of $8.2 million. Interfor held approximately 1,137,000 cubic meters of AAC for disposition at June 30th, subject to approvals from the Ministry of Forests.
• Subsequent to quarter-end on July 29th, Interfor sold 104,689 cubic meters of AAC for cash proceeds of $13.2 million.