Acadian Timber Corp. 1)Introduction Acadian timber is a leading supplier of forestry products in Eastern Canada and the Northern U.S. With its headquarters based in Vancouver B.C, Acadian Timber has a total of approximately 2.3 million acres of land, that sells a wide variety of products to 100 regional customers. These products include softwood or hardwood saw logs, pulp wood and biomass. It is the second largest timberland operator in New Brunswick, owning 761,000 acres of timberlands and 299,000 acres in Maine. Acadian Timber also provides management services relating to approximately 1.3 million acres of Crown licensed timberlands. Acadian’s operations also include a forest nursery in Second Falls, NB. Acadian’s business strategy is …show more content…
In conclusion, the report will address any ideas on how the company could gain market share and improve on its profits. 5) Stock Symbol: ADN Auditor of report: Ernst & young LLP. Highest stock market price: $20.20 March 31, 2016 Current Stock Market Price: $17.74 Dec 31,2016 Revenues: $77,000,000 Profits: $29,000,000 Dec 31,2015 Best financial performance since inception with net sales of $84.4 million, Dividends Declared: In the year ended Dec 31, 2016 dividends paid out were $17 million, or $0.96 per share. An increase from previous years 2015 that were $15.5 million, or $0.92 per share, and again in 2014 $13.8 million, or $0.83 per share. First Initial public offering: Jan 31, 2006 Competitors: West Fraser Timber Revenue 3,008,000,000 Profit: 87,000,000 Stock Market Price: $52.95 Norbord Inc.: Revenue: 1,149,000,000 Profit: 72,000,000 Stock Market Price: $38.53 Market overview for 12 months ending Dec 31, …show more content…
Although the home construction sector is expected to grow favorably in 2016, lumber prices are expected to remain level. This is due to a combination of weak offshore export markets and increased U.S. lumber mill capacity. Acadian has continued to pursue development opportunities in the U.S., Australia-asia and South America in support of its growth strategy. With aggressive competition for opportunities, their focus has shifted more so to resourceful, exclusive development opportunities. It was announced on February 4, 2016 that a review of strategic alternatives was initiated by Acadian’s Board of Directors which include a strategic transaction such as a merger or other business combination, and a sale of all or parts of its