Jul 28, 2009. /Lesprom Network/. West Fraser Timber Co. Ltd. reported a loss of $39 million or $0.91 per share on sales of $667 million in the second quarter of 2009 and a loss of $122 million or $2.85 per share, on sales of $1.3 billion for the first half of 2009. Hank Ketcham, West Fraser’s Chairman, President and CEO stated: “Our results reflect the continuing very poor economic environment that has significantly reduced home construction in North America and reduced the demand for our pulp and paper products.” The Company’s lumber operations produced EBITDA for the quarter of $1 million, compared to EBITDA of negative $47 million for the first quarter of 2009, reflecting an increase in lumber prices in the current quarter and the net effect of adjustments to the carrying values of log and lumber inventories during the first half of 2009. The average benchmark price of SPF and SYP lumber increased by $20 per Mfbm and $4 per Mfbm, respectively. The net effect on operating earnings resulting from period-end valuations of log and lumber inventories was positive $47 million for the current quarter compared to negative $8 million for the previous quarter. Panel operations, which include plywood, MDF and LVL, generated EBITDA for the quarter of $5 million compared to $7 million in the previous quarter reflecting continuing weakness in North American new home construction. Pulp and paper operations recorded EBITDA of negative $18 million compared to positive $17 million in the previous quarter as a result of price declines for all products combined with a scheduled maintenance shutdown at the Cariboo facility and the maintenance shutdown and market-related downtime at the Kitimat linerboard and kraft paper mill in the second quarter. U.S. housing starts remain at historic low levels. There are some indications of a potential recovery, including a declining supply of new homes for sale and improved affordability, but it is anticipated that general economic growth will be necessary to support any meaningful recovery in building product prices and demand from current low levels. Pulp and paper markets continue to be extremely weak due to the general global slowdown. “Our Company will continue to operate with a focus on minimizing losses and conserving cash until clear signs of recovery are evident”, said Mr. Ketcham. West Fraser is an integrated wood products company producing lumber, wood chips, LVL, MDF, plywood, pulp, linerboard, kraft paper and newsprint. The Company has approximately 8,500 employees and operations in western Canada and the southern United States.