In the 1Q lumber operations generated operating earnings of $84 million (4Q 2014 - $90 million) and Adjusted EBITDA of $117 million (4Q 2014 - $121 million). Reduced shipments and lower U.S. prices for SPF lumber were substantially offset by the benefit provided by a weaker Canadian dollar. Lumber markets weakened in the quarter, largely reflecting adverse weather conditions in eastern Canada and the U.S., as well as in parts of the U.S. south.
The panel segment, which includes plywood, LVL and MDF, generated operating earnings in the quarter of $23 million (4Q 2014 - $22 million) and Adjusted EBITDA of $26 million (4Q 2014 - $25 million), mostly reflecting increased Canadian dollar MDF prices. Plywood prices and shipments were reduced, reflecting both the weather-related constraints on Canadian construction as well as the oil and gas-related uncertainties in western Canada.
Pulp and paper operations generated operating earnings in the quarter of $20 million (4Q 2014 - $3 million) and Adjusted EBITDA of $30 million. Canadian dollar equivalent NBSK prices improved and our increased NBSK production and shipments reflected positive developments at our Hinton pulp mill following extended reliability issues both in the previous quarter and the early part of 2015.
West Fraser is a diversified wood products company producing lumber, LVL, MDF, plywood, pulp, newsprint, wood chips and energy with facilities in western Canada and the southern United States.
