Wood Business

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West Fraser announces first quarter results

April 28, 2013, Vancouver, B.C. – West Fraser Timber released results of their first quarter last week, and expect to see increased spending as they complete several projects during the remaining 2013 quarters.
 
They reported earnings of $67 million or, $1.57 per share on sales of $863 million.
 
Operational Results
 
In the quarter, lumber operations generated operating earnings of $122 million and EBITDA of $146 million. The improvement over the prior quarter reflects improved prices for SPF and SYP lumber.
 
The panel segment, which includes plywood, LVL and MDF, generated $14 million of operating earnings and EBITDA of $18 million in the quarter, reflecting higher plywood prices.
 
Pulp and paper operations generated an operating loss of $4 million in the quarter and EBITDA of $8 million. The decline from the prior quarter occurred despite the increase in pulp prices as the results were adversely affected by production issues at our NBSK mills.
 
Investing Activities
 
Cash flows used for investing activities in the quarter amounted to $47 million. Additions to capital assets included $40 million for the lumber segment, $1 million for the panels segment and $8 million for the pulp & paper segment. Spending is expected to increase substantially during the remaining quarters of 2013 as several large capital projects, including two biomass electricity and heat generation projects at our Chetwynd and Fraser Lake sawmills, a natural gas electricity generation project at our Alberta Newsprint joint venture and a biomethanation project at our Slave Lake pulp mill, have been initiated. We have also begun the rebuild of the Edson sawmill which we expect to be fully operational by the end of 2013.
 
To see the full release visit, www.westfraser.com.