Canadian loss

Press, 18 May 1984, Page 8

Canadian loss

Crown Forest Industries, Ltd, the Canadian subsidiary of Fletcher Challenge, Ltd, made a net loss of sCan6.9 million (SNZB.3M) in the first quarter of the 1984 calendar year.

This was because of in-dustry-wide labour disruptions, the directors say. “These disruptions were particularly untimely in that they prevented the company from taking advantage of the recovery in segments of our major markets,” the chairman, Mr Tom Rust said. Pulp and newsprint prices continued to strengthen, and the demand for both was likely to remain firm throughout the year, but wood products re-

mained a major area of concern although there had been some improvement in both price and demand, Mr ,Rust said.

Despite the labour-related setback in the first quarter, the company was optimistic some profit could be achieved for 1984, he added. Crown Forest was in a good position to take advantage of improvements in pulp and paper markets, and “provided U.S. housing construction does not weaken wood-products operations should begin to experience more favourable results,” Mr Rush said. Commenting on the result, Mr R. R. Trotter, chairman of Fletcher Challenge, said that the performance by Crown Forest was slightly better than expected when Fletcher’s produced its half-yearly report.