Business
Western Forest Products Announces Q3 2006 Results
Western Forest Products Announces Q3 2006 Results.
About this update from Western Forest Products Inc.
[{"type":"text","content":"\n\n\n\n\nIncrease in EBITDA Reported\n\nTSX: WEF\n\nDUNCAN, BC, Nov. 10 /CNW/ - Western Forest Products Inc. (TSX: WEF) today\nannounced its results for the third quarter of 2006. The Company achieved\nEBITDA of $10.2 million in the quarter compared to $7.7 million in the second\nquarter and negative $11.5 million in the third quarter of 2005. Year to date\nEBITDA totalled $17.8 million, an increase of $24.1 million compared to the\nsame period in 2005. The loss from operations narrowed to $0.8 million in the\nquarter from a loss of $8.0 million in the second quarter and a loss of\n$10.1 million in the third quarter of 2005. The improvement reflects a higher\nvalue mix of products sold and strong cedar prices.\n\n>\n\nThe Company reported a net loss from continuing operations of\n$11.4 million or $0.06 per share in the third quarter of 2006 compared to a\nnet loss from continuing operations of $8.2 million or $0.32 per share (based\non weighted average number of common shares outstanding at that time) in the\ncomparable period of 2005. The results for the comparable period of 2005\nincluded a foreign exchange gain of $13.3 million on the translation of the\nCompany's long-term debt and a net gain of $5.9 million associated with the\ntermination of a fibre-supply agreement and restructuring activities.\nReynold Hert, President and CEO noted, \"Our results for the quarter\npartly reflect the operational improvements we have begun to make in the\nbusiness following the acquisitions earlier this year.\"\n\nOperations\n\nCedar lumber prices continue to be well-supported in all markets\nincluding the U.S. The Japanese market has also been relatively robust due to\nincreased housing starts in 2006 and reductions in supply from competing\nregions. Pricing in Japan has been firm, particularly for kiln-dried products.\nConversely, the U.S. dimension lumber market has been influenced by a\nreduction in the number of housing starts coupled with over-supplied markets\nin the period leading up to the new softwood lumber agreement, which has had\nthe effect of depressing prices for dimension lumber.\nReynold Hert further noted that, \"The acquisition of Cascadia has helped\nus weather the recent steep price decline in the U.S. structural dimension\nmarket. The U.S. structural lumber market represents a lower percentage of our\ntotal sales in ...