Prince George, B.C.- Calling it the worst year in his company’s history, Hank Ketcham, President of West Fraser Timber LTD reported his company lost $137 million in 2008, and nearly half ($70 million) occurred in the 4^th quarter.

 

Ketcham holds little optimism of any real improvement  this year "In 2008 our Company suffered its worst financial loss in its history as the lengthy and severe downturn of the U.S. housing market continued and, late in the year, global pulp markets collapsed."

 

The company has curtailed about 30% of its annual production capacity of 6 billion board feet, curtailments are not   something  Ketcham takes lightly “  We deeply regret the disruption to the lives of so many of our valued employees, their families and the communities in which we operate as a result of the production curtailments we have been forced to undertake."

 

Many lumber producers have announced curtailments in an attempt to balance production against extremely weak demand.

 

Panel operations generated EBITDA for the quarter of $11 million compared to $5 million in the previous quarter.

 

Pulp and paper operations generated EBITDA of $42 million compared to $45 million in the previous quarter although demand fell off sharply late in the quarter.

 

2009 is expected to be another very challenging year for West Fraser's lumber operations as a near-term recovery of the U.S. housing market appears unlikely. Demand for pulp and paper products is expected to be weak as the global economic recession continues. West Fraser will continue to assess its operating strategy in light of these poor conditions.