ARTICLE · 06 DECEMBER 2012

Global Forest And Paper Industry: Net Earnings Summary - Three Months Ended September 30, 2012

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Canadian forest and paper products companies reported strong net earnings for the third quarter of 2012, with the solid wood, panel and diversified product companies posting generally better results than the pulp and paper producers.

CanadaStrategy

Frédéric Bouchard

Canada

Canadian forest and paper products companies reported strong net earnings for the third quarter of 2012, with the solid wood, panel and diversified product companies posting generally better results than the pulp and paper producers. 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. The strong Canadian dollar will continue to make market conditions challenging for all Canadian exporters.

Western Canadian based companies posted net earnings of $775.1¹ 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. Catalyst Paper Corporation reported net earnings of $688.4 million for the quarter compared to net losses of $12.3 million in the second quarter of 2012. Catalyst completed the final steps towards financial reorganization in

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