AFPA Q3 2011 Results

AFPA members produce $548 million of product in 3rd quarter…
Values decrease slightly from the 2^nd Quarter

Edmonton, December 7, 2011 – Values of lumber, panelboard, pulp and paper manufactured by Alberta Forest Products Association-member companies totaled approximately $548 million for the 3^rd quarter of 2011. The value of production was down roughly $2 million from the previous quarter and $50 million from the 3^rd quarter of 2010.

"While we never want to see total values decline, there is reason for optimism," said AFPA President and CEO Brady Whittaker. “We have seen modest gains in the lumber market, due in part to hard work that has been put into developing the Asian market.”  Whittaker attributed the overall decline in values to a softening of the pulp and paper market. “That market has been robust for the last several quarters. While prices have slipped, the pulp and paper market remains quite healthy.”

AFPA members continue to be innovators. Many facilities around the province have seen investments to improve environmental performance and increase production efficiency. Members continue to work to control the spread of the mountain pine beetle and gain an increased share of markets in emerging economies.

More information can be found on our website at albertaforestproducts.ca.

The Alberta Forest Products Association is a private, non-profit industry organization, representing lumber, panelboard, pulp and paper, and secondary manufacturing wood products companies operating in Alberta. AFPA member companies are active participants in sustainability advancements that contribute economic, environmental and social benefits for Albertans.

Media contact:

Brock Mulligan
Director of Communications
p) 780.452.2841 ext. 229
e) bmulligan@albertaforestproducts.ca

BACKGROUND INFORMATION

Sector Analysis

LUMBER – AFPA-member companies produced 720 million board feet (mmfbm) between July and September 2011 with a value of $172.9 million. Part of this production came from the secondary manufacturing sector. Total production volumes were down 12.1 mmfbm or 1.7% from Q3-2010, but stronger prices led to a $3.3 million or 1.9% increase in values. Compared to Q2-2011, volumes were down by 9.9 mmfbm (1.4%), but values increased by $4.3 million (2.6%).

PANELBOARD – AFPA-member Panelboard operators produced 273 million square feet of 7/16 inch equivalent product in Q3-2011 valued at $67.5 million. Production was down 11.3 million square feet (4%), and value decreased $5 million (6.9%) compared to Q3-2010. When looking at Q3-2011 versus Q2-2011, production was down 29.5 million square feet (9.8%), but pricing factors moderated the decline in value to $1.1 million (1.6%).  

PULP & PAPER – The AFPA’s pulp and paper sector total production in the third quarter of 2011 was 379,300 air dried metric tonnes (ADMT) valued at $308.2 million. Production was down 16,900 ADMT (4.3%) from Q3-2010 and values declined $48 million (13.5%). Compared to Q2-2011, production was up 2,100 ADMT or 0.6%, but values decreased $5.4 million or 1.7%.

Production Figures and Values – (2010 and 2011)

Source: Random Lengths (S-P-F, Western, Kiln Dried 2x4, 2&btr, Random, Prices Net FOB Mill)

Source: Random Lengths, Madison’s Canadian Lumber Reporter

Source: Pulp & Paper Week - Resource Information Systems Incorporated

CUMULATIVE TOTALS - ALL AFPA SECTORS

Q3-2011          $548,480,000          Q3-2010          $598,160,000                                     

Q2-2011           $550,755,000             Full year 2010  $2,311,460,000                                  

Media contact

Brock Mulligan
Director of Communications
p) 780.452.2841 ext. 229
e) bmulligan@albertaforestproducts.ca