The international timber market has recorded a downturn in results during the first quarter, with companies on both sides of the Atlantic tabling year-on-year declines.
In Europe, UPM-Kymmene and Stora Enso faced up to a turbulent market, with Stora Enso noting that wood products accounted for more than half of its year-on-year fall in earnings, which saw net profits fall from €197.2m in 2007 to €66.5m in 2008.
UPM recorded a decline in its operating profits, which fell from €221m to €193m excluding special items. It said a downturn in the wood products market had played a significant role in this.
In North America, the shrinking housing market has continued to take its toll. West Fraser Timber Co recorded a loss of C$69m during the first quarter compared with a C$5m loss in 2007, while Plum Creek Timber saw its earnings fall from US$45m to US$38m comparatively.
“We’re focusing our activities on the best markets during these challenging economic conditions,” said Rick Holley, president and chief executive officer of Plum Creek.
For more in-depth coverage of the first-quarter results, see the next issue of TTJ.
