Business
Western Announces 3rd Quarter Results
Western Announces 3rd Quarter Results.
About this update from Western Forest Products Inc.
[{"type":"text","content":"\n\n\n\n\nTSX: WEF\n\nDUNCAN, BC, Nov. 14 /CNW/ - Western Forest Products Inc. (\"Western\" or\nthe \"Company\") announced today the Company's results for the 3rd quarter ended\nSeptember 30, 2005. The Company will host a teleconference call on Tuesday,\nNovember 15, 2005 at 10:00 a.m. PST (1:00 p.m. EST) on the Company's results.\n(See below for details on participation.)\nResults for the quarter reflect weak lumber and pulp prices due to an\noversupplied market and the impact of a strong Canadian dollar.\n\n Q3 2005 Overview\n\n-------------------------------------------------------------------------\n - EBITDA for the solid wood segment of negative $2.2 million, down\n from positive $2.2 million in the second quarter reflecting lower\n realised lumber prices and change in sale mix, a stronger Canadian\n dollar and the Silvertree severance of $7.2 million partially\n offset by the gain of $13.1 million from the termination of the\n Saw-log supply agreement with TimberWest.\n - EBITDA for the pulp segment of negative $4.2 million compared to\n negative $0.7 million in the prior quarter as a result of lower\n pulp prices and a stronger Canadian dollar.\n - Total liquidity at the end of the third quarter of $61.3 million\n was comprised of cash of $3.9 million, cash in a working capital\n reserve account of $48.5 million, and availability under our\n operating line of credit of $8.9 million.\n-------------------------------------------------------------------------\n\nReynold Hert, President & CEO commenting on the results noted, \"As\nexpected, market conditions have continued to be difficult with lower prices\nand a higher exchange rate in the third quarter. During these tougher market\nconditions we have improved our liquidity by being disciplined in our mill\noperations, following through on our inventory reductions, and selling non\ncore assets. We continue to balance liquidity with making fundamental shifts\nin the base business performance. As announced, the Silvertree sawmill was\nclosed with $7.2 million in severance being incurred, and the Saltair sawmill\nhas been indefinitely curtailed. When the markets and our inventory levels are\nright, we will be implementing the third shifts at our remaining sawmills.\"\nThe Company is also in the process of reviewing its assets to determine\nwhether they remain core to its b...