Poor lumber markets and higher anti-dumping duties contributed to a C$37.2m operating loss for Western Forest Products in the second quarter.
A C$8.5m non-cash write down of the company’s Silvertree sawmill, which is to close as part of restructuring, also impacted earnings.
Western Forest Products’ solid wood division recorded an operating loss of C$16m, compared to a C$22.5m profit a year ago.
Lumber sales were similar to 12 months ago but prices slightly improved from the first quarter.
The company’s restructuring plans include closing the Silvertree mill and curtailing production at the Saltair facility. This will enable the firm to consolidate its sawmill operations into four lower cost mills working two or three shifts insteads of the six facilities currently working one or two shifts.
Closure of Silvertree is expected to save C$4m in costs annually.
