Weakness in the US housing market and challenging exchange rates continue to have a negative impact on North American company results.
Weyerhaeuser Co’s net earnings fell by by US$123m year-on-year to US$101m in the third quarter. Net sales were down from US$4.6bn in 2006 to US$4.1bn in 2007.
West Fraser Timber Co Ltd, Canfor, Louisiana-Pacific Corporation and Norbord also felt the impact of the market decline, with West Fraser recording a loss of C$12m, Canfor a net loss of C$42.1m, Louisiana-Pacific suffering a net loss of US$68m and Norbord posting a C$1m loss.
Norbord said that its improved results – it recorded a loss of C$15m in the second quarter – were driven by strong panel prices in Europe, while West Fraser said that a strong plywood market had helped its panel operation achieve higher earnings before interest, taxes, depreciation and amortisation.
Many of the companies are adjusting their operations to cope with the depressed market.
