West Fraser Has Positive 2nd Quarter
Friday, July 20, 2012 @ 3:52 AM
Prince George, B.C. – West Fraser is reporting earnings of $27 million in the second quarter on sales of $774 million. That’s an increase of $17 million over the earnings reported in the same quarter last year, on sales of $720 million.
The company says lumber prices rallied, as U.S. demand has improved, and there is a continuing Asian demand for Canadian lumber. The company also benefited from a reduction in duties charged on softwood exports to the U.S
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West Fraser says it is expected the lumber and panels divisions will continue to improve if the U.S. home construction continues to recover, however, the company notes the U.S. recovery “still appears to be fragile and could be set back by adverse global economic events..”
The predictions for the NBSK pulp business is not so optimistic, with the company saying “additional supply coming onstream will require market adjustments before prices will recover.”
"We are encouraged by this quarter’s results and we expect to see continuing operational improvements as a result of our extensive capital program and the efforts of all of our people” says West Fraser’s Chairman and CEO “We are well positioned to take advantage of the anticipated recovery."
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