West Fraser's Third Quarter Positive
By 250 News
Monday, October 25, 2010 03:52 PM
Prince George, B.C. - West Fraser Timber Co. is reporting earnings of $45 million in the third quarter, and earnings of $128 million for the first nine months of the year.
"Although we are experiencing a slow recovery in some of our key markets, we are generally very pleased with our results. Our improved cash flows allow us the opportunity to reinvest in our operations which will better position us to take advantage of the eventual economic recovery," said Hank Ketcham, the Company's Chairman, President and CEO.
The company’s third quarter report shows how the U.S. housing market remained weak and it was the shipments to China that supported lumber sales.
The company’s third quarter report shows how the U.S. housing market remained weak and it was the shipments to China that supported lumber sales.
As for panels, this sector generated earnings of $14 million in the quarter although plywood prices did come under pressure although the decline in that area was offset by stronger MDF prices.
As for pulp and paper operations, they generated earnings of $41 million.
Pulp prices increased in the quarter with the average NBSK benchmark price for the quarter increasing to US$1,000 per tonne compared to US$993 in the previous quarter. Record pulp production of over 300,000 tonnes for the quarter contributed to the strong segment results.
The economic uncertainty in the U.S. continued to delay a recovery in U.S. new home construction, which is a key market for West Fraser’s lumber, MDF and LVL. West Fraser expects pulp prices to be reasonable over the near term as a result of the improving global economy.
Mr. Ketcham concluded, "Despite the uncertain recovery, we are confident that our well capitalized mills, our strong balance sheet and our low cost culture will allow us to maintain our leadership position in our industry."
The economic uncertainty in the U.S. continued to delay a recovery in U.S. new home construction, which is a key market for West Fraser’s lumber, MDF and LVL. West Fraser expects pulp prices to be reasonable over the near term as a result of the improving global economy.
Mr. Ketcham concluded, "Despite the uncertain recovery, we are confident that our well capitalized mills, our strong balance sheet and our low cost culture will allow us to maintain our leadership position in our industry."
Previous Story - Next Story
Email
Print
Facebook
Twitter
Digg
Del.icio.usReturn to Home
Posted by: He spoke on October 25 2010 8:13 PM