West Fraser Reports Positive Results for 2010

By 250 News

Prince George, B.C. – West Fraser is reporting earnings after discontinued operations of $39 million on sales of $719 million in the fourth quarter of 2010 and earnings after discontinued operations of $166 million on sales of $2,886 million for 2010.

"Markets are still somewhat uneven, reflecting the fragile nature of the recovery. However, our mills ran well despite some challenging weather conditions and we are generally pleased with the results." said Hank Ketcham, the Company's Chairman, President and CEO.

West Fraser says its lumber  operations benefited in 2010 from improved prices supported by continuing constrained supply and increased Chinese demand for SPF lumber.

Pulp and paper operations generated operating earnings in the quarter of $30 million  down from the $41 million recorded in the  third quarter. Pulp prices weakened during the quarter.

West Fraser says although the 2010 results  are a significant improvement to the previous year,  the outlook remains cautious for the year ahead.

The absence of a meaningful recovery of the U.S. housing market and continuing threats to global economic recovery are the main reasons for that cautious outlook.  At the same time, West Fraser expects  SPF lumber and pulp prices to  increase because of the strong demand from Asia.

"Despite some market uncertainties, we are well positioned to benefit from the eventual recovery. Our low-cost, highly-efficient facilities allow us to operate at high rates and generate value for our shareholders throughout the recovery cycle." said Hank Ketcham.

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