Jul 27, 2005. /Lesprom Network/. West Fraser Timber Co. Ltd. reported earnings of CAD38 million or CAD0.88 per share on sales of CAD953 million in the second quarter of 2005 compared to earnings of CAD67 million or CAD1.79 per share on sales of CAD607 million in the second quarter of 2004. For the first half of 2005, earnings were CAD81 million or CAD1.87 per share, on sales of CAD1,855 million. This compares to earnings of CAD93 million or CAD2.50 per share, on sales of CAD1,148 million for the first half of 2004. EBITDA was CAD137 million or 14% of sales for the quarter compared to EBITDA of CAD146 million or 24% of sales in the second quarter of 2004. For the first half of 2005 EBITDA was CAD279 million or 15% of sales compared to CAD224 million or 20% of sales for the first half 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. “West Fraser continues to make excellent progress integrating the acquired Weldwood operations and effectively positioning the Company to take full advantage of its increased production capacities and expanded sales capabilities," said Hank Ketcham, Chairman, President and Chief Executive Officer. EBITDA in the lumber division for the quarter was CAD108 million or 18% of sales compared to CAD107 million or 28% of sales in the second quarter of 2004. Lumber duties expensed in the quarter were CAD43 million (compared to CAD42 million in 2004). Benchmark SPF 2X4 lumber prices averaged US$361 per Mfbm in the current quarter compared to the previous quarter’s average of US$398 per Mfbm and the second quarter 2004 average of US$437 per Mfbm. The greater availability of rail cars during the quarter led to improved shipping levels compared to the first quarter of this year and the comparative quarter of last year. West Fraser continues to use ocean vessels to deliver lumber to the U.S. east coast in order to provide greater reliability to its customers. The construction of the previously-announced CAD100 million sawmill in Quesnel, British Columbia. began in April and completion is expected in the summer of 2006. A third shift was implemented at the Houston, British Columbia sawmill on July 18 which is expected to add 100 MMfbm to annual lumber capacity. Panel operations generated EBITDA of CAD17 million or 13% of sales in the quarter compared to CAD25 million or 32% of sales in the comparable quarter of 2004. MDF mill net realizations improved during the quarter from both the first quarter of 2005 and the second quarter of 2004. The benchmark plywood price averaged CAD358 per Msf for the second quarter compared to an average of CAD439 per Msf for the first quarter of the year and CAD590 per Msf for the second quarter of 2004. West Fraser’s pulp and paper operations recorded EBITDA of CAD15 million or 6% of sales for the quarter compared to EBITDA of CAD24 million or 14% of sales in the same quarter of last year. The Kitimat linerboard and kraft paper mill, the Hinton NBSK mill and the Quesnel joint venture NBSK mill completed annual maintenance shutdowns in the second quarter. As a result of the shutdowns, production of linerboard and kraftpaper was reduced by approximately 21,000 tonnes and production of NBSK was reduced by approximately 22,000 tonnes. The Alberta newsprint mill ran well and remained rofitable despite poor newsprint markets. Benchmark prices for NBSK have remained flat while newsprint and linerboard have improved from the second quarter of 2004. The strengthening of the Canadian dollar has effectively offset any improvements in U.S. dollar pricing. West Fraser is an integrated forest products company that produces lumber, wood chips, LVL, MDF, plywood, pulp, linerboard, kraft paper and newsprint. The company has manufacturing operations in British Columbia, Alberta and the southern United States. West Fraser has approximately 7,100 employees and is headquartered in Vancouver, British Columbia.