West Fraser Timber reports 3Q loss of $198 million
Nov 05, 2009. A $155-million writedown related to West Fraser Timber Co.'s Kitimat pulp mill and other sawmill assets contributed to a 3Q loss of $198 million, or $4.64 a share for the B.C. lumber giant. The loss was on sales of $679 million.
Nov 05, 2009. /Lesprom Network/. A $155-million writedown related to West Fraser Timber Co.'s Kitimat pulp mill and other sawmill assets contributed to a 3Q loss of $198 million, or $4.64 a share for the B.C. lumber giant. The loss was on sales of $679 million, as Vancouver Sun reported.
By comparison, West Fraser lost $2 million, or five cents a share, on sales of $848 million during the 3Q 2008.Despite the loss, West Fraser reported earning before interest, taxes, depreciation and amortization of $42 million.
The quarterly results are an improvement over the 2Q, the company reported in a news release. Housing starts in the United States were up while existing home inventories declined. Lumber pricing was mixed. Spruce, pine and fir prices from Canadian operations were up slightlty while southern yellow pine from U.S. operations declined in price.
Pulp prices were up, due to tighter global inventories and improved demand, particularly form China.