Canfor Writes Down Assets

NA -  The U.S. housing crisis coupled with a Canadian dollar at par has taken a quarter-billion-dollar bite out of the value of Canada's second-largest lumber company.

Vancouver-based Canfor Corp. announced Tuesday that it can't recover the carrying value of its mills and other assets - listed at $4.7 billion - from expected cash flows. It's therefore writing down the value of those assets by $256 million, a 5.5-per-cent drop in the value of the company.

The writedown, referred to as an asset impairment charge, is to be recorded in the company's fourth-quarter results.
January 8, 2008