OTTAWA, Nov. 29 /CNW Telbec/ - Canada's paper products industry will lose
money for the third consecutive year in 2007, but is expected to break even
next year, according to the Conference Board's Canadian Industrial Outlook:
Canada's Paper Products Industry - Autumn 2007.
"Profits in recent years have taken a double hit from the rapid rise of
the loonie, since industry revenues are in U.S. dollars and costs are mainly
in Canadian dollars," said Valérie Poulin, Economist. "However, modest gains
in prices will help the industry make a slow recovery starting in 2008."
The industry will lose more than $400 million this year. With costs
expected to decrease faster than revenues in 2008, the industry can expect a
modest profit of $6 million next year. Profits are forecast to steadily
improve, exceeding $1 billion annually starting in 2010.
Production of paper products has been falling since 2004 and is expected
to decline through 2008, as the increased use of computers and the internet
limits North American demand for some grades of paper. Although demand from
China is on the rise, it will not offset the loss of exports to the U.S. and
weak domestic consumption.
For further information:
For further information: Brent Dowdall, Media Relations, (613) 526-3090
ext. 448, firstname.lastname@example.org; www.conferenceboard.ca