West Fraser Releases 2nd Quarter Results

By 250 News

West Fraser has  released its second quarter results, and  it has  recorded  a loss of $14 million on sales of $948 million compared to a loss of $5 million or $0.12 per share on sales of $759 million in the first quarter of 2007 .

While there was increased production, that can largely be associated with the  addition of 13 US sawmills.

Later this year, additional planer capacity will be added to the Quesnel operations to handle the increased volume of lumber being produced by the new sawmill as it moves through its startup.

The mountain pine beetle infestation is impacting most of the company's B.C. lumber operations. West Fraser says it  is working with other companies in the industry and the B.C. government to address potential economic concerns related to the mountain pine beetle infestation. This includes ensuring stumpage determinations accurately reflect the value of mountain pine beetle-affected logs. In Alberta, West Fraser is shifting harvesting operations to areas that are at a higher risk of infestation.

West Fraser is expecting difficult market conditions to continue, especially for building products. The strength of the Canadian dollar will continue to negatively impact the Company's results.

West Fraser has approximately 9,300 employees and operations in B.C., Alberta and the southern United States.

Canfor's second quarter results are expected shortly.  The company is also expected to make an announcement in regard to the  planned indefinite shutdown of the Mackenzie sawmill.

Email | Print | Facebook | Twitter | Digg | Del.icio.us