West Fraser boosted its net profits to C$45m in the third quarter from a C$100m loss a year ago, despite lower lumber and plywood prices.
The lumber segment generated operating earnings of C$22m despite weakening prices during the period, reflecting a continuing weak US housing market. Shipments to China continued to increase in the quarter, supporting lumber prices.
The panel segment, which includes plywood, LVL and MDF, generated operating earnings in the quarter of $14m.
Plywood prices came under pressure in the quarter, with the average benchmark price declining 13% from the previous quarter as US-produced plywood was sold into the Canadian market. The impact of this decline on panel segment results was largely offset by stronger MDF prices.
