CanWel reports Q4 2011 net loss from continuing operations of C$1.7M, improving on previous year's Q4 loss of C$2.6M, on revenues down 22% to C$138.3M; CEO 'encouraged' by strength of sales activity and demand in 2012
March 29, 2012
– CanWel Building Materials Group Ltd. (CanWel) has reported a net loss from continuing operations for Q4 2011 of C$1.7 million, improving on a Q4 2010 loss of C$2.6 million. Sales for the quarter were down 22%, to C$138.3 million compared to C$177.8 million for the same period in 2010.
In a March 28 press release distributed through Marketwire, Vancouver, British Columbia-based CanWel reported a net loss from continuing operations for the year ended Dec. 31 2011 of C$685,000 compared with earnings from continuing operations in 2010 of C$16.2 million.
Sales for the full year of 2011 were down 33% to C$692.9M, from C$1.03 billion in 2010, which the release credited to “a significant reduction in volume of construction materials sold compared to the corresponding period in 2010, as well as the temporary weather related closure of one of CanWel's wood treatment facilities in western Canada.”
Other factors impacting on the company’s sales volumes included the challenging building conditions in the early part of 2011, which were largely weather related.
Gross margin percentage increased to 11%, or C$76.5 million, versus 10.3%, or C$106.4 million, when compared on a year-over-year basis. The increase in gross margin percentage was mainly credited to the decrease in construction materials in CanWel's sales mix.
2011 "proved to be an economically challenging year, starting with a very slow first quarter which set the tone for the remainder of the year," said CanWel Chairman and CEO Amar S. Doman in the release. "However, we remained focused on our priorities and successfully completed the integration of BLC [Broadleaf Logistics Company].”
Doman said CanWel was “well positioned to benefit from demand returning to historical and more normalized levels” and “encouraged with the strength of sales activity and overall demand in our markets in 2012."
The primary source of this article is a press release from Vancouver, British Columbia-based CanWel via Marketwire that was not available for U.S. distribution on March 28, 2012.