In the latest round of third-quarter results, one of the biggest, Weyerhaeuser, said it expected earnings at its wood products division to fall towards the end of the year after posting pre-tax profits for the third quarter showing a gain of just 3%.
West Fraser Timber said improvements in its third-quarter results was largely attributable to reduced costs and productivity improvements, while Plum Creek said timber performed well in a “continuing slow growth environment”.
Weyerhaeuser said pre-tax earnings at the Wood Products division rose US$3m to US$105m. Revenues fell slightly to US$1.05bn. Earnings were forecast to be “significantly weaker” in the fourth quarter due to a softer lumber and OSB market, and lower sales volumes across all product lines. Overall earnings, excluding an almost US$1bn windfall from land sales, were up 43% to US$178m on sales 2% higher at US$1.9bn.
Operating earnings at West Fraser’s lumber operations were C$101, up from C$81m in the previous three months. Improved plywood prices boosted panel operations to C$25m from C$10m. Overall earnings were up 5% to C$111m on sales down slightly at C$1.03bn.
Revenues at Plum Creek’s timber operations were up 15.6% to US$563m. Overall revenues were up 4% at US$1.04bn. Earnings at Norbord North American operations fell to US$15m from US$33m.
