Prince George, B.C.- West Fraser is reporting   earnings of $55 million in the 3^rd quarter, that’s double the $27 million recorded in the 2^nd  quarter of this year, and up from the $37 million recorded in the 3^rd quarter of last year.

 

West Fraser notes a gradual improvement in lumber demand in the United States and steady demand in Canada and Asia.

 

Pulp and Paper operations generated earnings of $17 million despite a lower price for NBSK as reduced production costs helped improve earnings over the previous quarter.

 

West Fraser has also announced it has purchased the Sundance sawmill and remanufacturing operations based in Edson, Alberta. That operation can produce about 150 million board feet per year, and has an annual allowable harvest of 795,000 m3 of coniferous and 53,000 m3 of deciduous trees, including a temporary uplift of approximately 375,000 m3 until 2017.

 

Hank Ketcham, West Fraser’s Chairman and Chief Executive Officer said “We are encouraged by the signs of a recovery in the U.S. and we feel that we are well positioned to take advantage of the strengthening of the U.S. housing market.”

 

The company says it expects results from   its lumber and panels business to improve it the U.S. housing construction sector continues to improve, but cautions the current recovery could be adversely affected by U.S. or global economic events.