Interfor recorded net earnings of $111.7 million in 2018, compared to $97.2 million in 2017. Adjusted EBITDA was $280.4 million on record annual sales of $2.2 billion.
Interfor recorded a net loss in Q4’18 of $13.2 million compared to net earnings of $28.1 million in Q3’18 and $36.2 million in Q4’17. Adjusted net loss in Q4’18 was $19.8 million compared to Adjusted net earnings of $28.2 million in Q3’18 and $45.1 million in Q4’17.
Adjusted EBITDA was $6.2 million on sales of $468.5 million in Q4’18 versus $69.4 million on sales of $570.5 million in Q3’18.
Interfor’s average lumber selling price fell $102 to $599 per mfbm, on 647 million board feet of lumber sales.
The company's total lumber production was 607 million board feet, down 67 million board feet quarter-overquarter. This decline reflects Interfor’s previously announced plan to temporarily reduce production across its B.C. Interior operating platform. In addition, project related down-time in the U.S. South and normal holiday-related operating schedules further contributed to the lower lumber production.
Interfor's operating cost increases were driven by B.C. log cost inflation, which was impacted by higher stumpage rates and open market log costs.
Interfor’s operating costs were also impacted by an increase in its net realizable value provision for log and lumber inventories by $8.2 million in Q4’18.