|
Vancouver, B.C. – West Fraser Timber Co. Ltd. reported earnings for the second quarter
of 2012 of $27 million and earnings per share of $0.63 on sales of $774 million. For the first
half of 2012, earnings were $10 million and earnings per share were $0.24, on sales of $1.5
billion.
In the quarter the lumber segment generated operating earnings of $34 million and EBITDA of
$53 million. Lumber prices rallied strongly as improved U.S. demand combined with continuing
Asian demand for Canadian lumber. Higher lumber prices also triggered a reduction in duties
(from 15% to 10%) charged on softwood lumber exported to the U.S. from B.C. and Alberta for the month of June 2012.
The panels segment, which includes plywood, LVL and MDF, generated operating earnings in
the quarter of $8 million and EBITDA of $12 million. Improved plywood and MDF prices were
the main contributors.
Results are set to continue improving from the lumber and panels businesses if U.S. new home
construction continues to recover. Although, despite some encouraging signs, the current recovery still
appears to be fragile and could be set back by adverse global economic events according West Fraser's news release. Source: West Fraser
|
