Aggregate net earnings of 13 of the largest Canadian forest, paper and packaging companies deepened from $368 million in the fourth quarter of 2007, to $1.3 billion during the last quarter of 2008 according to PricewaterhouseCoopers reports.
Western Canadian companies net losses increased across the board to $641 million in the fourth quarter of 2008, compared to $368 million during the same quarter in 2007. Only Timberwest saw improved fourth quarter results because of a $340 million net gain from its fair value adjustment on modification of debt.
Eastern companies saw losses worsen from $106 million recorded in the fourth quarter to 2007, to $954 million in the last quarter of 2008.
"It would seem that many companies in the industry are cleaning up their balance sheet, some to the positive and some to the negative; perhaps writing down investments and assets to their net realizable value," said Craig Campbell of PricewaterhouseCoopers. "Companies have been bleeding and we expect the pain to continue as long as the economy is spiraling downward.
