Prince George, B.C.- It may be the largest softwood lumber producer in North America but West Fraser Timber has recorded another loss.

 

The company lost C$83 million on sales of C$619 million for the first quarter, compared to a net loss of C$69 million on sales of C$772 million for the same   quarter in 2008.

 

West Fraser’s Chairman, President and CEO, Hank Ketcham,stated: “Despite our poor earnings, we have maintained a strong balance sheet and substantial liquidity. This is the result of the continuous focus by our people on cost control and efficiency.”

 

Pulp and paper operations  took a serious hit, generating EBITDA of $17 million, that’s less than half the amount recorded in Q4 ($42 million) as prices for all pulp and paper products produced by West Fraser fell in response to sharply lower demand.

 

Ketcham says the sector is not out of the woods yet. North American lumber markets continue to be extremely weak in spite of continuing significant production curtailments by West Fraser and other producers. Pulp and paper markets have weakened significantly due to the continuing poor world economy. Second quarter results will be affected by scheduled maintenance downtime at West Fraser’s Kitimat and Cariboo facilities.

 

“Although we have seen an improvement from extremely low lumber prices, it is too early to talk about a recovery. Our markets and the economy in general continue to be fragile and our operating strategy will reflect this,” said Mr. Ketcham.

 

Financially, 2008 was the worst year on record for West Fraser.