West Fraser turns loss into profit

27 July, 2010

Canadian timber company West Fraser Timber has reported earnings after discontinued operations of C$83m for the first half of 2010.

The results contrast with a C122m loss a year ago. Sales reached C$1.46bn, up from C$1.17bn.

“Although the improved results were driven largely by higher prices for all products, we benefited from higher production and shipments by our lumber division, as well as from our continued focus on cost control across the company,” said CEO Hank Ketcham.

The lumber division posted operating earnings of C$47m, while the panels business (plywood, LVL and MDF) generated operating earnings of C$15m. Plywood prices increased 13% in the second quarter compared to the previous quarter.

But it said lumber prices were expected to be lower in the second half of the year as low US housing starts dampens demand.