In the quarter its lumber operations generated operating earnings of $13 million (1Q 2015 - $84 million) and Adjusted EBITDA of $45 million (1Q 2015 - $117 million). A sharp decline in U.S. lumber prices which triggered the imposition of export duties on shipments of lumber from Canada into the U.S., a slightly stronger Canadian dollar and increased inventory writedowns were major factors in the decreases. Significantly improved lumber production and shipments partially mitigated the operating earnings decline.
The panel segment, which includes plywood, LVL and MDF, generated operating earnings in the quarter of $17 million (1Q 2015 - $23 million) and Adjusted EBITDA of $21 million (1Q 2015 - $26 million). The decline mostly reflects decreased plywood prices partially offset by improved shipments for all of its panel products.
Pulp & paper operations generated an operating loss of $1 million (1Q 2015 - earnings of $20 million) and Adjusted EBITDA of $8 million (1Q 2015 - $30 million). Decreased prices for all of its pulp & paper products and scheduled maintenance shutdowns at its Cariboo NBSK mill and both BCTMP mills were significant factors in 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.