West Fraser Timber posts profit of $45 million

West Fraser Timber Co Ltd. has posted a profit of $45 million in its latest quarter on sales of $707 million.

“Although we are experiencing a slow recovery in some of our key markets, we are generally very pleased with our results. Our improved cash flows allow us the opportunity to reinvest in our operations which will better position us to take advantage of the eventual economic recovery.” said Hank Ketcham, the company’s Chairman, President and CEO.

“Despite the uncertain recovery, we are confident that our well capitalized mills, our strong balance sheet and our low cost culture will allow us to maintain our leadership position in our industry.”

West Fraser Timber's third quarter saw a decrease in net profit over its previous quarter, mainly due to the result of weakening lumber

prices, including sharply weaker SYP lumber prices, during the quarter as well as a modest decline in pulp prices in the latter part of the current quarter.

West Fraser Timber's lumber production in Canada was near capacity in its third quarter, while its U.S. lumber operations were operating at 75% capacity due to uncertain markets.

A pulp production record was also achieved in the latest quarter. Production was 19% higher than in the previous quarter as planned maintenance shutdowns occurred in the second quarter at both NBSK mills and the Quesnel BCTMP mill. Production in the current quarter was 5% higher than in the corresponding quarter in 2009 reflecting improved operating rates in each of the pulp mills.

Read more:

West Fraser Announces Third Quarter Results (West Fraser Timber)

Q3 2010 Highlights (West Fraser Timber)