Q2 ResultsSome positives from CFX's Q2 results:
-They did much better than West Fraser's pulp business in Q2
-Nice to finally see corporate costs come down ($2.6M vs. $4.1M in Q1)
-Good working capital swing helping cash flow
-Manufactuing costs were down a fair bit (energy, chemical and fibre costs lower)
-Lower proportion of whole log chipping in Q2
-Completed slush pulp supply from intercon to paper machine
-We should see fibre costs continue to decline in Q3
Overall the results from Q2 were weak but that is mostly due to lower pulp prices. The Company did a decent job of controlling what they could.
It's encouraing to see china pulp future prices come up a little bit - hopefully that continues.