West Fraser Timber Co. Ltd. recently reported earnings of $55 million or $1.29 per share on sales of $878 million in the third quarter of 2013.
In the third quarter lumber operations generated operating earnings of $57 million (Q2 - $103 million) and EBITDA of $83 million (Q2- $125 million). The weaker results compared to the previous quarter reflect lower lumber prices during the current quarter.
The panel segment generated operating earnings of $6 million (Q2 - $6 million) and EBITDA of $9 million (Q2 - $10 million) in the quarter. Higher plywood and MDF prices were offset by higher log costs and reduced MDF production.
Pulp and paper operations generated operating earnings of $29 million (Q2 - $20 million) and EBITDA of $40 million (Q2 - $31 million). Higher prices, a slightly weaker Canadian dollar and improved NBSK production contributed to the improved results.
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"Our third quarter results reflect lower lumber prices offset somewhat by improved pulp prices compared to the previous quarter." said Ted Seraphim, President and CEO of West Fraser. "Given our strong balance sheet and strong cash generation from our operations we remain focused on our aggressive capital spending program over the next few years as we fully modernize our operations."
West Fraser an integrated wood products company producing lumber, wood chips, LVL, MDF, plywood, pulp and newsprint. The company has operations in western Canada and the southern United States.
