VICTORIA —
The crisis facing B.C. forest industry is intensifying as markets decline, mills shut and a strike involving 3,000 forestry workers enters its seventh month.
The multiple threats are deeper than the global meltdown of 2008 and may rival the damage wrought by B.C.’s 1980s recession, setting off massive industry restructuring, says an insider who is hearing from many people on the brink of financial collapse.
“There’s a whole bunch of things swirling around that’s causing a whole world of hurt for people working in this industry,” said David Elstone, executive director for the B.C. Truck Loggers Association.
“Many people are saying this is worse than 2008. Back in 2008, the industry was in rough shape but so was the rest of the world in tough shape with the global financial crisis.”
Other factors hitting B.C.’s forest industry now include low timber prices, less demand from Asian markets, U.S. tariffs, high cost structures, government fees or stumpage rates, timber supply shortages, mill closures in B.C.’s Interior and the strike on Vancouver Island, he said.
“Time will hopefully end the strike,” said Elstone. “Time will hopefully help us recover markets.”
Late last year, Finance Ministry budget numbers revealed forest revenues were down 11 per cent and projected harvest volumes of 46 million cubic metres were the lowest in years.
Among the mill closures was Mosaic Forest Management on Vancouver Island, which announced an early winter shutdown of timber harvesting operations, putting 2,000 people out of work indefinitely.
About 175 workers at a mill owned by Tolko Industries in Kelowna lost their jobs with the operation’s permanent closure on Jan. 8. Last year Canfor’s permanent closure of its mill in Vavenby, north of Kamloops, resulted in the loss of 172 jobs in the community of about 700 people.
Elstone said he heard from many forest industry contractors at the recent Truck Loggers Association annual convention who are struggling to make ends meet, especially from those on Vancouver Island where the strike has hit hard.
“It goes well beyond the 3,000 workers being affected,” he said. “My membership, the contractors, employ the majority of the workers. It goes to the tire shops, the dealerships, the grocery stores.”
Premier John Horgan spoke at the convention Thursday, saying the government will make $5 million available for loans to help contractors in danger of losing their equipment due to the strike.
He said he was aware many of the contractors have not been able to work since last July when the strike between Western Forest Products and members of the Steelworkers union started.
Horgan mentioned the challenges facing B.C.’s forest industry, including U.S. duties on B.C. softwood exports, mill closures in the Interior, two consecutive wildfire seasons and ongoing structural changes in the industry. But he said the strike remains deeply concerning.
“The elephant in the room is abundantly clear to everyone here,” said Horgan. “A labour disruption of seven months is unprecedented in B.C. history. If you haven’t made a dollar since July, there’s not much I can say to you that’s going to give you comfort other than we are indeed in this together.”
Horgan said he has contacted both the company and the union and firmly suggested they negotiate a settlement. He said he expected some movement next week but did not elaborate.
“Western is doing everything we can to reach a mutually beneficial settlement with the USW,” said the statement. “We continue to take our lead from mediators, Vince Ready and Amanda Rogers, and we are awaiting word on next steps.”
Elstone said the Truck Loggers Association appreciated Horgan’s appearance at the convention.
“By being there he did demonstrate he is concerned himself,” said Elstone. “He did say what’s been going on with the length of the strike is unacceptable. I will give the premier credit for showing some strong emotion and trying to reach out and show some empathy for people who are suffering right now with their livelihoods in question with the strike and the forest industry crisis in general.”
Opposition Liberals forestry critic John Rustad also attended the convention and said the premier’s speech did not provide much relief to contractors facing financial hard times.
“They’re frustrated. They’re angry,” he said. “They want to be working and they aren’t working. They’re financially stressed. It was probably the most sombre truck loggers convention I’ve attended in all the years I’ve been going to them.”
This report by The Canadian Press was first published Jan. 19, 2019.
CALGARY – TC Energy Corp. has lowered the estimated cost of its Southeast Gateway pipeline project in Mexico.
It says it now expects the project to cost between US$3.9 billion and US$4.1 billion compared with its original estimate of US$4.5 billion.
The change came as the company reported a third-quarter profit attributable to common shareholders of C$1.46 billion or $1.40 per share compared with a loss of C$197 million or 19 cents per share in the same quarter last year.
Revenue for the quarter ended Sept. 30 totalled C$4.08 billion, up from C$3.94 billion in the third quarter of 2023.
TC Energy says its comparable earnings for its latest quarter amounted to C$1.03 per share compared with C$1.00 per share a year earlier.
The average analyst estimate had been for a profit of 95 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 7, 2024.
BCE Inc. reported a loss in its latest quarter as it recorded $2.11 billion in asset impairment charges, mainly related to Bell Media’s TV and radio properties.
The company says its net loss attributable to common shareholders amounted to $1.24 billion or $1.36 per share for the quarter ended Sept. 30 compared with a profit of $640 million or 70 cents per share a year earlier.
On an adjusted basis, BCE says it earned 75 cents per share in its latest quarter compared with an adjusted profit of 81 cents per share in the same quarter last year.
“Bell’s results for the third quarter demonstrate that we are disciplined in our pursuit of profitable growth in an intensely competitive environment,” BCE chief executive Mirko Bibic said in a statement.
“Our focus this quarter, and throughout 2024, has been to attract higher-margin subscribers and reduce costs to help offset short-term revenue impacts from sustained competitive pricing pressures, slow economic growth and a media advertising market that is in transition.”
Operating revenue for the quarter totalled $5.97 billion, down from $6.08 billion in its third quarter of 2023.
BCE also said it now expects its revenue for 2024 to fall about 1.5 per cent compared with earlier guidance for an increase of zero to four per cent.
The company says the change comes as it faces lower-than-anticipated wireless product revenue and sustained pressure on wireless prices.
BCE added 33,111 net postpaid mobile phone subscribers, down 76.8 per cent from the same period last year, which was the company’s second-best performance on the metric since 2010.
It says the drop was driven by higher customer churn — a measure of subscribers who cancelled their service — amid greater competitive activity and promotional offer intensity. BCE’s monthly churn rate for the category was 1.28 per cent, up from 1.1 per cent during its previous third quarter.
The company also saw 11.6 per cent fewer gross subscriber activations “due to more targeted promotional offers and mobile device discounting compared to last year.”
Bell’s wireless mobile phone average revenue per user was $58.26, down 3.4 per cent from $60.28 in the third quarter of the prior year.
This report by The Canadian Press was first published Nov. 7, 2024.
TORONTO – Canada Goose Holdings Inc. trimmed its financial guidance as it reported its second-quarter revenue fell compared with a year ago.
The luxury clothing company says revenue for the quarter ended Sept. 29 totalled $267.8 million, down from $281.1 million in the same quarter last year.
Net income attributable to shareholders amounted to $5.4 million or six cents per diluted share, up from $3.9 million or four cents per diluted share a year earlier.
On an adjusted basis, Canada Goose says it earned five cents per diluted share in its latest quarter compared with an adjusted profit of 16 cents per diluted share a year earlier.
In its outlook, Canada Goose says it now expects total revenue for its full financial year to show a low-single-digit percentage decrease to low-single-digit percentage increase compared with earlier guidance for a low-single-digit increase.
It also says it now expects its adjusted net income per diluted share to show a mid-single-digit percentage increase compared with earlier guidance for a percentage increase in the mid-teens.
This report by The Canadian Press was first published Nov. 7, 2024.
