The lumber segment recorded operating income of $1.8 million during the 4Q 2014 compared to $2.9 million in the previous quarter and $3.3 million in the 4Q 2013. Lumber segment EBITDA totaled $4.5 million compared to $5.8 million in the previous quarter and $5.6 million in the 4Q 2013.
4Q 2014 shipments of Conifex produced lumber outpaced production by 15% due to seasonally lower production volumes and to stronger than typical shipment levels. An increase in revenues from Conifex produced lumber of 7% over the previous quarter was attributable almost equally to higher unit gross sales realizations and shipment volumes.
The growth in revenues from non-wholesale lumber of 22% over the 4Q 2013 was largely due to higher shipment volumes of 13% and improvements in unit gross sales realizations of 8%. Wholesale lumber revenues and shipments were comparatively flat over the last two quarters of 2014 but increased significantly over the fourth quarter of 2013 due primarily to the acquisition of Lignum Forest Products LLP in February 2014.
Conifex and its subsidiaries' primary business currently includes timber harvesting, reforestation, forest management, sawmilling logs into lumber and wood chips, and value added lumber finishing and distribution.
