Jul 22, 2011. /Lesprom Network/. West Fraser Timber Co. Ltd. reported earnings of $10 million and a diluted loss per share of $0.09 on sales of $720 million in the 2Q 2011. For the first half of 2011, earnings were $29 million and diluted earnings per share were $0.68, on sales of $1.4 billion, as the company said in a press release received by Lesprom Network. "Historic low housing starts and economic uncertainty continue to negatively affect lumber and panel prices," said Hank Ketcham, the Company's Chairman, President and CEO. "On a positive note, lumber shipments to Japan are stable while shipments to China are continuing to grow at a steady rate." In the quarter the lumber segment generated an operating loss of $8 million and EBITDA of $11 million. Sharp declines in lumber prices combined with higher Canadian log costs and a stronger Canadian dollar were the key factors in the decline in earnings from the previous quarter. SPF shipments to offshore markets increased in the first half of 2011 but North American markets remain weak. The panels segment, which includes plywood, LVL and MDF, generated an operating loss in the quarter of $5 million and negative EBITDA of $1 million. Weak plywood prices and higher log costs adversely affected earnings during the quarter. MDF and LVL operations continue to operate on a curtailed basis. Pulp and paper operations generated operating earnings of $21 million and EBITDA of $38 million. Pulp prices increased in the quarter with the average NBSK benchmark price for the quarter increasing to $1,025 per tonne, an increase of 6% from the previous quarter. Despite an eight-day unplanned shutdown at the Slave Lake pulp mill due to forest fires and a 13-day planned maintenance shutdown at the Cariboo pulp mill, total pulp production was marginally higher than in the previous quarter. West Fraser is an integrated wood products company producing lumber, wood chips, LVL, MDF, plywood, pulp and newsprint. The Company has operations in western Canada and the southern United States.