BURNABY, British Columbia – Interfor recorded a first-quarter net loss of $72.9 million on sales of $813.2 million. The Q1 financial deficit comes on the heels of a net loss of $169.0 million the company recorded in Q4 2023.

Interfor pointed to the ongoing challenging lumber market for its financial struggles. The company said lumber prices continued to reflect an imbalance of lumber supply and demand, with demand continuing to be impacted by the elevated interest rate environment and ongoing economic uncertainty. Interfor noted that lumber prices improved slightly during Q1 2024. The company’s average selling price of $610 per MFMB was $9 higher versus Q4 2023.

Interfor said it expects North American lumber markets over the near term to remain depressed as the economy continues to adjust to inflationary pressures, elevated interest rates, labor shortages, geo-political uncertainty, and industry-wide lumber production continues to adjust to match demand.

On April 30, Interfor announced plans to reduce its lumber production by approximately 175 million board feet between May and September of 2024, representing just under 10% of its normal output.

While bracing for planned production cuts, Interfor spent $26 million on capital improvements in Q1, including $15.8 million of discretionary investment focused on the multi-year rebuild of its Thomaston, Ga., sawmill.