West Fraser Timber posts quarterly profit of $63 million

West Fraser Timber posted a profit of $63 million in its last quarter, compared to a loss of $39 million a year ago.

Sales were up in all segments and came in at $772 million, up from $612 million.

“Although the improved results were driven largely by higher prices for all products, we benefited from higher production and shipments by our lumber division, as well as from our continued focus on cost control across the Company.” said Hank Ketcham, West Fraser Timber's Chairman, President and CEO.

Lumber prices in the second half of the year are expected to be lower than in the first half of the year as low U.S. housing starts will continue to dampen demand.

Housing starts in Canada are likely to support reasonable demand for plywood, although increasing imports of U.S. plywood could temper price increases.

Pulp markets are weakening due to reduced demand in China. As a result we anticipate that pulp prices will be under pressure through the third quarter.

Source: West Fraser Timber