Oct 26, 2006. /Lesprom Network/. West Fraser Timber Co. Ltd. reported on October 25 a loss of $8 million or $0.19 per share on sales of $809 million in the third quarter of 2006 compared to earnings of $104 million or $2.41 per share on sales of $888 million in the second quarter of 2006 and earnings of $18 million or $0.42 per share on sales of $890 million in the third quarter of 2005. For the first nine months of 2006, earnings were $102 million or $2.36 per share, on sales of $2,599 million. This compares to earnings of $99 million or $2.29 per share, on sales of $2,745 million for the first nine months of 2005. EBITDA1 was $53 million or 7% of sales for the quarter compared to EBITDA of $87 million or 10% of sales for the second quarter of 2006 and $73 million or 8% of sales for the third quarter of 2005. For the first nine months of 2006, EBITDA was $255 million or 10% of sales compared to $352 million or 13% of sales for the first nine months of 2005. “The recent steep decline in U.S. housing starts and resulting decline in lumber prices dramatically affected our quarterly results” says Hank Ketcham, chairman, president & chief executive officer. “The low lumber prices not only resulted in lower revenue but led to a write down of log and lumber inventories of approximately $36 million, or an after-tax amount of $24 million or $0.55 per share.” Outlook For the balance of the year the prices for lumber and plywood are expected to be depressed although some improvement may be seen in lumber prices due to announced shutdowns of sawmills by third parties and the resolution of the lumber trade dispute. Pulp and paper operations should continue to be profitable in the fourth quarter. West Fraser is an integrated forest products company producing lumber, LVL, MDF, plywood, pulp, linerboard, kraft paper and newsprint. The company has approximately 6 900 employees and operations in British Columbia, Alberta and the southern United States.