West Fraser announces third quarter earnings of $0.42 per share

Oct 25, 2005. /Lesprom Network/.  West Fraser Timber Co. Ltd. on Monday reported third quarter earnings of $18 million or $0.42 per share on sales of $890 million compared to earnings of $78 million or $1.95 per share on sales of $700 million in the third quarter of 2004. For the first nine months of 2005, earnings were $99 million or $2.29 per share, on sales of $2,745 million. This compares to earnings of $171 million or $4.48 per share, on sales of $1,848 million for the first nine months of 2004.

EBITDA1 was $73 million or 8% of sales for the quarter compared to EBITDA of $144 million or 21% of sales in the third quarter of 2004. For the first nine months of 2005, EBITDA was $352 million or 13% of sales compared to $368 million or 20% of sales for the first nine months of 2004. West Fraser’s 2005 results include the results of operations from the Weldwood acquisition that closed on December 31, 2004, which are not reflected in reporting periods before 2005.

“The impact of price declines in our building products, and pulp and paper markets, was compounded by the continued appreciation of the Canadian dollar and rising fuel costs,” said Hank Ketcham, chairman, president and chief executive officer. “West Fraser remains focused on cost, efficiency and productivity improvements to help meet the challenge of increasingly difficult market conditions.”

In millions of Canadian dollars

West Fraser Timber Co Ltd. is an integrated forest products company producing lumber, wood chips, fibreboard, plywood, pulp, linerboard, kraft paper, and newsprint. Today, the company carries on its operations through subsidiary companies and joint ventures owned directly or indirectly by the company’s principal operating subsidiary West Fraser Mills.