Business
West Fraser Announces Fourth Quarter and Annual Results For 2006
West Fraser Announces Fourth Quarter and Annual Results For 2006.
About this update from West Fraser Timber Co. Ltd.
[{"type":"text","content":"\n\n\n\nVANCOUVER, Feb. 15 /CNW/ - West Fraser Timber Co. Ltd. today reported\nearnings of $296 million or $6.87 per share on sales of $727 million in the\nfourth quarter of 2006 compared to a loss of $8 million or $0.19 per share on\nsales of $809 million in the third quarter of 2006 and earnings of $9 million\nor $0.20 per share on sales of $832 million in the fourth quarter of 2005.\n\n\nFor the full year, earnings were $398 million or $9.23 per share on sales\nof $3,326 million. This compares to earnings of $108 million or $2.49 per\nshare on sales of $3,577 million for 2005.\n\n\nWest Fraser's fourth quarter and 2006 annual earnings reflect a duty\nrefund of $387 million plus interest of $50 million that resulted from the\nsettlement of the softwood lumber dispute. EBITDA(1), excluding the duty\nrefund, would have been $40 million or 6% of sales for the fourth quarter of\n2006 and $296 million or 9% of sales for 2006. This compares to EBITDA of\n$53 million or 7% of sales for the third quarter of 2006 and $95 million or\n11% of sales for the fourth quarter of 2005. EBITDA for the full year of 2005\nwas $447 million or 12% of sales.\n\n\nFourth quarter 2006 earnings reflect the following after-tax items:\n\n- A gain of $289 million or $6.70 per share including interest,\n recorded as the result of the refunds generated from the settlement\n of the softwood lumber dispute;\n- A gain of $22 million or $0.50 per share related to the sale of West\n Fraser's interest in the Burns Lake and Decker Lake sawmills and\n associated harvesting rights;\n- An expense of $4 million or $0.08 per share related to share option\n compensation; and\n- An expense of $12 million or $0.28 per share related to the\n translation of U.S. denominated debt.\n\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 shutdown of a 50% owned sawmill in 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\n\nOperational Results\n\n\nLumber EBITDA for the quarter was $388 million, including the\n$387 million duty refund. EBITDA, excluding the duty refund, would have ...