Global Forest and Paper Industry: Net Earnings Summary — Three months ended September 30th, 2009

This net earnings summary is prepared by PwC from financial statements issued by the companies listed in the PDF below. Canadian dollars are used unless otherwise noted. All comparative figures are with the three months ended September 2008.

Canada
During 2009’s third quarter, Canada’s forest and paper sector reported losses of $632 million, which exceeded losses of $552 million reported in the same quarter of 2008. The industry sustained challenging business conditions with slow-moving demand and pricing for commodity products. Pulp prices escalated during the quarter but closed below the previous year’s levels.

United States
All but two US companies surveyed posted positive or improved earnings. Ten of the country’s largest public forest and paper businesses posted earnings of US$1.2 billion in the third quarter of 2009, up almost US $500 million from earnings of US $733 million during the same period of 2008.

Europe and the rest of the world
Ten of the largest European-based forest and paper companies incurred overall losses of €469 million in the third quarter of 2009, comparable to losses of €486 million reported in the third quarter of 2008. Through supply and disciplined spending, financial performance improved for eight of the 10 companies. Producers surveyed in Japan and emerging markets reported US $453 million in earnings, an improvement from losses of US $280 million in the third quarter of 2008.

Previous editions of the Net Earnings Summary can be downloaded below.