Why a weaker loonie can be a double-edged sword for some Canadian papermakers' balance sheets

摘要

US newsprint makers are convinced that mills in Canada reap large cash windfalls when the Canadian dollar weakens against its US counterpart, since US dollar-denominated transactions south of the border provide higher realizations in Canadian dollar terms. They also believe these higher revenues from US sales give Canadian mills leeway to be more aggressive on pricing without sacrificing profit margins.