The panel segment, which includes plywood, LVL and MDF, generated $7 million of operating earnings and EBITDA of $11 million in the quarter, reflecting higher plywood prices.
Pulp and paper operations generated operating earnings of $22 million in the quarter and EBITDA of $32 million. The improvement from the previous quarter reflected improved pulp prices, a weaker Canadian dollar and improved operating rates at its mills.
During the quarter, much of Canada and the U.S. experienced severe winter conditions and significantly restricted railcar availability, which impaired the transport of its products to market. Shipments were further adversely affected by a 28-day trucking strike at the port of Vancouver during March. As a result, our finished-goods inventories at the end of the quarter were at unusually high levels.
"We continue to be confident about the long-term recovery of the U.S. housing market although we do expect that it will be bumpy," West Fraser's President and CEO Ted Seraphim said. "Our purchases of three sawmills, two in Arkansas and one in northern Alberta reflects our positive view of the future. The current combined capacity of these mills is 380 million board feet and with some additional capital investment, we expect to increase capacity to 485 million board feet."
West Fraser is 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.
