Business
West Fraser Announces Second Quarter Results - "WFT"
West Fraser Announces Second Quarter Results - "WFT".
About this update from West Fraser Timber Co. Ltd.
[{"type":"text","content":"\n\n\n\n\nVANCOUVER, July 27 /CNW/ - West Fraser Timber Co. Ltd. today reported\nearnings of $104 million or $2.41 per share on sales of $888 million in the\nsecond quarter of 2006 compared to earnings of $6 million or $0.14 per share\non sales of $902 million in the first quarter of 2006 and earnings of\n$38 million or $0.88 per share on sales of $953 million in the second quarter\nof 2005. For the first half of 2006, earnings were $110 million or $2.55 per\nshare, on sales of $1,790 million. This compares to earnings of $81 million or\n$1.87 per share, on sales of $1,855 million for the first half of 2005.\nEBITDA(1) was $87 million or 10% of sales for the quarter compared to\nEBITDA of $115 million or 13% of sales for the first quarter of 2005 and\n$137 million or 14% of sales for the second quarter of 2005. For the first\nhalf of 2006 EBITDA was $202 million or 11% of sales compared to $279 million\nor 15% of sales for the first half of 2005.\n\nSecond quarter 2006 earnings reflect the following after-tax items:\n\n>\n\nOperational Results\n\nLumber EBITDA for the quarter was $49 million or 10% of sales compared to\n$91 million or 17% of sales in the first quarter of 2006. The decline in\nEBITDA resulted primarily from lower lumber prices combined with the stronger\nCanadian dollar during the quarter. Benchmark SPF 2X4 lumber prices averaged\nUS $316 per Mfbm for the quarter compared to US $343 per Mfbm in the first\nquarter of 2006. The Canadian dollar averaged US $0.89 in the second quarter\ncompared to US $0.87 in the first quarter of 2006.\nSoftwood lumber duties continued to affect the Company's financial\nresults. West Fraser expensed $22 million in lumber duty payments in each of\nthe first and second quarters of 2006(2).\nAll sawmills operated at or near capacity during the quarter. Fewer\noperating days in the quarter resulted in a production decline from the\nprevious quarter. The Quesnel, B.C. sawmill rebuild remains on schedule with\nproduction to commence in the fourth quarter of this year.\nOn June 30, 2006, the Company reached an agreement with the Province of\nB.C. for compensation of $29 million for 1,275,000 cubic metres of timber\nrights expropriated under the government's Forestry Revitalization Plan. An\nadditional $2 million was received in the quarter for certain related assets.\nA gain of $14 million ...