For the first quarter of 2020, the company reported an operating loss of $88.8 million, $29.2 million higher than the operating loss of $59.6 million reported for the fourth quarter of 2019.
The significant decline reflected materially lower operating earnings in the lumber segment, partially offset by improved operating earnings in the pulp and paper segment, according to the quarterly shareholders’ report. Reported results in the first quarter of 2020 included a $63.0 million inventory write-down for the lumber operating segment, partly offset by a $10.7 million recovery in the inventory write-down provision for the pulp and paper operating segment.
In addition, current quarter results included a net duty expense of $44.4 million, at a current cumulative effective countervailing duty (“CVD”) and anti-dumping duty (“ADD”) rate of 29.24% (versus a combined cash deposit rate of 20.52%), compared to $43.7 million reported in the fourth quarter of 2019 at the same combined rate. Cumulative cash deposits as at March 31, 2020 total $454.5 million.