Higher lumber prices and record OSB production levels have led to significantly improved third quarter earnings from many North American timber companies.
Louisana-Pacific Corporation reported quarterly net profits of US$124.5m from sales of US$675m, compared with US$3.3m profits and US$415m sales in the corresponding quarter last year.
It said the improvement was due to strong OSB demand and record price levels. Quarterly OSB production reached an all-time-high of 1.45 billion ft2.
Boise Cascade recorded profits of US$32.9m on sales of US$2.1bn, an improvement from the US$8.5m profits a year ago. Boise Building Solutions’ operating profits rose to US$56.4m from US$14.5m last year, with plywood prices increasing 28% and sales of engineered wood products growing by 25%.
However, trading at Plum Creek Timber was hit by summer fires closing vast areas of forest and the ongoing trade dispute with Canada. Fires cost it about US$9m, contributing to a 36% fall in profits to US$45m.
Canadian company Slocan Forest Products saw its quarterly earnings jump to C$16.1m from a net loss of C$12.3m in 2002. Lumber profits of C$6.4m were positively impacted by improving US selling prices.
West Fraser Timber has seen profits dive to C$9m in the first nine months of 2003, compared with C$102m last year, due to a strengthening Canadian dollar, a mill strike and softwood lumber duties.
