Lower prices impact West Fraser results

The division posted a figure of C$106m (Q1: C$107m) as a larger number of shipments was offset by lower prices, higher log costs and increased freight charges.

The company said lumber shipments increased sharply in the second quarter - up 60% on Q1 - after the settlement of the 28-day strike at the port of Vancouver.

"As the strike-related lumber inventory backlog continues to clear and US housing continues to gradually recover, lumber prices have stabilised and show some improvement in July. However, we expect them to remain fairly volatile," it said.

West Fraser expects log costs in British Columbia to rise as competition for purchased wood increases but the company's productivity is expected to improve over the next few quarters.

The slight increase in the panel division's performance, with EBITDA earnings of C$13m (Q1: C$11m), reflected improved plywood prices and shipments.

For the company as a whole, Q2 EBITDA was down C$2m to C$146m, and down from C$178m in Q2 2013.