Western Forest Products reported 3Q net income of $2 million

Nov 08, 2012. /Lesprom Network/. Western Forest Products Inc. announced results for the 3Q 2012. Net income for the 3Q 2012 was $2 million, on sales of $219.4 million, which compares to a net income reported in the 3Q 2011 of $5.3 million ($0.01 per share) and a net income reported for the 2Q 2012 of $10.6 million ($0.02 per share), as the company said in the press release received by Lesprom Network. The 3Q EBITDA result of $8.4 million is a decline from the $15.8 million figure reported in the 3Q a year ago. "The US recovery is underway and housing is accelerating, Japan is showing improvement and China remains a key market. We are continuing to position Western to take full advantage of these market improvements. Our margin focus, repositioned cost structure, and flexibility allowed us to post our twelfth consecutive quarter of positive EBITDA in the 3Q. Dry weather conditions impacted log supply but despite this, our sawmill productivity continued to climb and our timberlands performed well in delivering volume even with operating days being reduced significantly. The demand for our lumber products increased, our lumber order file emerged from the quarter strong, and our liquidity and debt position is still the best it has been since the Company's inception" said Dominic Gammiero, Chairman and CEO. Net income for the first nine months of 2012 was $14.5 million, which compares to net income in the first nine months of 2011 of $20.5 million. EBITDA of $36.4 million for the nine months to September 30, 2012 is $13.6 million less than for the first nine months of 2011. Partially offsetting this decrease in EBITDA is an increase in other income of $6.2 million, mainly as a result of gains on property sales in the current period, and lower finance costs in the nine months ended September 30, 2012. Western is an integrated Canadian forest products company and the largest coastal British Columbia woodland operator and lumber producer with an annual available harvest of approximately 6.4 million cubic metres of timber of which approximately 6.2 million cubic metres is from Crown lands and lumber capacity in excess of 1.1 billion board feet from eight sawmills and three remanufacturing plants. Principal activities conducted by the Company include timber harvesting, reforestation, sawmilling logs into lumber and wood chips and value-added remanufacturing.