Western Forest Products Inc has announced a loss, before taxes and deductions of C$2.2m for its solid wood segment, down from a positive C$2.2m in the second quarter.
The company said this reflects lower realised lumber prices and change in sale mix, a stronger Canadian dollar and the Silvertree severance of C$7.2m partially offset by the gain of C$13.1m from the termination of the sawlog supply agreement with TimberWest.
President and CEO Reynold Hert said: “As expected, market conditions have continued to be difficult with lower prices and a higher exchange rate in the third quarter. During these tougher market conditions we have improved our liquidity by being disciplined in our mill operations, following through on our inventory reductions, and selling non core assets. We continue to balance liquidity with making fundamental shifts in the base business performance.
“As announced, the Silvertree sawmill was closed with C$7.2m in severance being incurred, and the Saltair sawmill has been indefinitely curtailed. When the markets and our inventory levels are right, we will be implementing the third shifts at our remaining sawmills.”
The company is also reviewing its assets to see whether they remain core to its business and said its focus will revolve around the solid wood business including logging from Crown timberlands and manufacturing of lumber.
