Business
West Fraser Announces Fourth Quarter and Annual Results For 2005
West Fraser Announces Fourth Quarter and Annual Results For 2005.
About this update from West Fraser Timber Co. Ltd.
[{"type":"text","content":"\n\n\n\n\nVANCOUVER, Feb. 16 /CNW/ - West Fraser Timber Co. Ltd. today reported\nfourth quarter earnings of $9 million or $0.20 per share on sales of\n$832 million compared to earnings of $41 million or $0.94 per share on sales\nof $552 million in the fourth quarter of 2004.\nFor the full year, earnings were $108 million or $2.49 per share, on\nsales of $3,577 million. This compares to earnings of $212 million or $5.36\nper share, on sales of $2,400 million for 2004.\nEBITDA(1) was $95 million or 11% of sales for the quarter compared to\nEBITDA of $74 million or 13% of sales in the fourth quarter of 2004. For the\nfull year, EBITDA was $447 million or 12% of sales compared to $442 million or\n18% of sales for 2004.\nWest Fraser's 2005 results include the earnings of the acquired Weldwood\noperations, which are not reflected in reporting periods before 2005.\nFourth quarter 2005 earnings reflect the following after-tax items:\n\n- A gain of $3 million or $0.07 per share related to share option\n compensation;\n- An expense of $3 million or $0.07 per share for costs related to the\n previously-announced indefinite shutdown of a 50% owned sawmill in\n Red Earth, Alberta; and\n- A gain of $4 million or $0.09 per share related to the recognition of\n prior years' scientific research and experimental development tax\n credits.\n\nFourth quarter 2004 earnings include the following after-tax items:\n\n- A gain of $3 million or $0.07 per share related to share option\n compensation; and\n- A gain of $23 million or $0.52 per share related to the translation\n of U.S. dollar denominated debt.\n\n\"2005 was a very significant year for West Fraser,\" said Hank Ketcham,\nChairman, President and Chief Executive Officer. \"The Company marked its\n50 year anniversary and completed the integration of the acquired Weldwood\noperations. Today we have a much larger and stronger West Fraser with proud\nemployees who share a common vision for success.\"\n\nOperational Results\nThe Canadian dollar averaged US $0.85 in the fourth quarter of 2005\ncompared to US $0.83 in the third quarter of the year and US $0.82 in the\nfourth quarter of last year. The Company estimates that every U.S. cent\nincrease or decrease relative to the Canadian dollar results in an approximate\n$19 million(2) change to earnings on an annualized basis.\nFuel cost increases resul...