West Fraser Timber Co. Ltd. reported earnings of $98 million, or $1.22 basic earnings per share on sales of $1,111 million in the 2Q 2016.
In the quarter lumber operations generated operating earnings of $78 million and Adjusted EBITDA of $113 million. Increased U.S. lumber prices and strong sales partially offset by a stronger Canadian dollar contributed to the improvement in earnings.
The panel segment, which includes plywood, LVL and MDF, generated operating earnings in the quarter of $18 million and Adjusted EBITDA of $21 million. Improving plywood prices and increased shipments were the primary contributors to the improved earnings.
Pulp & paper operations generated an operating loss of $5 million and Adjusted EBITDA of $4 million. A stronger Canadian dollar was the main contributor to the reduced earnings.
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.