Continued strength in the US housing market and rising prices for wood products have boosted the profits of North American timber companies during the first quarter of 2004.
Weyerhaeuser reported net profits of US$121m, up from a loss of US$54m a year ago, and predicted second quarter earnings to be even higher. The company said the housing market’s strength had prompted an early quarter recovery in prices.
Plum Creek Timber reported first quarter profits of US$155m, a dramatic increase from the US$33m recorded a year ago. It attributed growth to higher wood prices and sales of timberlands.
Canfor‘s net profits were down to C$32m compared to C$40.2m in 2003 but the wood products division’s net profits were C$57.6m, an improvement of C$65.6m on last year.
Boise Cascade Corporation’s net profits were US$63.5m, compared with US$27.5m 12 months ago. Sales doubled to US$3.5bn, up from US$1.9bn, primarily due to the acquisition of OfficeMax. Plywood, lumber and engineered wood products sales were strong.
Potlach Corporation posted US$21.8m net profits for the first quarter, compared to a loss of US$8.9m a year ago, with OSB sales prices nearly double the level of a year ago.
International Paper‘s first quarter net earnings rose 66% to US$73m.
