Business
Western Forest Products Announces Q4 2005 Results
Western Forest Products Announces Q4 2005 Results.
About this update from Western Forest Products Inc.
[{"type":"text","content":"\n\n\n\n\nTSX: WEF\n\nDUNCAN, BC, March 28 /CNW/ - Western Forest Products Inc. (TSX: WEF)\ntoday announced its results for the fourth quarter and year ended December 31,\n2005. The Company will host a teleconference call on Thursday, March 30, 2006\nat 10:00 a.m. PST (1:00 p.m. EST) on the Company's results. (See below for\ndetails on participation).\nDuring the fourth quarter of 2005, the Company announced a number of\nsignificant strategic initiatives that are designed to improve its competitive\nposition in the industry and build value for shareholders.\n\n Q4 2005 Overview\n-------------------------------------------------------------------------\n- Announced a definitive agreement to acquire Cascadia Forest Products\n Ltd., a significant coastal lumber producer with 3.6 million cubic\n metres of annual allowable cut under crown tenures, for approximately\n $120 million plus net working capital. Acquisition financing was\n secured from a $295 million fully underwritten equity rights offering.\n Also secured $308 million of new long-term debt facilities to redeem\n the Company's existing issue of US$221 million of senior secured bonds\n and a restated revolving credit facility.\n- Announced the acquisition of the Englewood Logging Division, formerly\n owned by Canfor Corporation, that includes 945,000 cubic metres of\n annual allowable cut under TFL 37 on Vancouver Island.\n- Announced the closure of the 275,000 tonne NBSK Squamish pulp mill in\n March 2006 and the decision to exit the softwood pulp business.\n- EBITDA for the solid wood segment improved to negative $0.8 million\n compared to negative $8.1 million in the third quarter and negative\n $10.3 million in the fourth quarter of 2004, primarily due to reduced\n logging costs.\n- Operating loss for the quarter of $84.5 million includes non-recurring\n charges totaling $71.4 million (non-cash write-downs of $47.6 million,\n and severance and other costs of $23.8 million) relating to the\n closure of the Squamish pulp mill.\n\nCommenting on the quarter, Reynold Hert, President and CEO noted, \"The\nfourth quarter marked a milestone for Western. Over the course of 2005, we had\nbeen working on the implementation of our business strategy, and we believe\nthe initiatives announced represent the foundation upon which we can build a\nglobally competitive, softwood lumber co...