Canfor will record a noncash asset write-down and impairment charge of 321 million Canadian dollars, or about $235.3 million, in the fourth quarter.

Roughly C$215 million of the charge relates to Canfor's lumber segment, while C$106 million is from its pulp and paper business, the Vancouver-based forest products manufacturer said Tuesday.

The impairment in lumber is associated with Canfor's European operations. It reflects ongoing log supply pressures in Europe, which have resulted in increased log costs and reduced asset carrying values.

In pulp, there have been sustained declines in the global U.S.-dollar pulp list prices, as well as challenges in securing economically viable fiber necessary to support operations, Canfor said.

The charge is noncash and doesn't affect Canfor's liquidity positions, cash flows or day-to-day operations.
 
Source: marketwatch.com