$8 Million Third Quarter Loss for West Fraser
By 250 News
Other mill owners have indicated they have been operating at a loss since July, West Fraser has just added its name to the list.
The company has released its third quarter results, and it is reporting a loss of $8 million dollars, West Fraser blames slumping lumber prices and the drop in housing starts in the U.S.
There was some good news. West Fraser says all sawmills operated well during the quarter and the shipments to customers were "approximately equal to production".
Pulp and newsprint prices improved in the quarter and West Fraser is expecting to get softwood lumber duty refunds of about US $343 million before tax (81% of US $424 million), plus interest, although the timing of receipt is still uncertain.
The company's outlook for the fourth quarter is mixed as it expects prices for lumber and plywood to remain low although it says that could change with other companies announcing sawmill shutdowns. Pulp and paper operations should continue to be profitable in the fourth quarter.
Canfor will release its third quarter results after the markets close tomorrow. Canfor has been watching the lumber price issue on a day to day basis before making any further announcements of possible downtime at its mills. Last week, Canfor announced downtime in Mackenzie, the PolarBoard plant and the indefinite closure of its finger joint plant in Grande Prairie.
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Posted by: kimbo on October 26 2006 9:21 AM
Does the wording give them more power or what?