West Fraser Announces Fourth Quarter and Annual Results For 2006

About this update from West Fraser Timber Co. Ltd.

VANCOUVER, Feb. 15 /CNW/ - West Fraser Timber Co. Ltd. today reported earnings of $296 million or $6.87 per share on sales of $727 million in the fourth quarter of 2006 compared to a loss of $8 million or $0.19 per share on sales of $809 million in the third quarter of 2006 and earnings of $9 million or $0.20 per share on sales of $832 million in the fourth quarter of 2005. For the full year, earnings were $398 million or $9.23 per share on sales of $3,326 million. This compares to earnings of $108 million or $2.49 per share on sales of $3,577 million for 2005. West Fraser's fourth quarter and 2006 annual earnings reflect a duty refund of $387 million plus interest of $50 million that resulted from the settlement of the softwood lumber dispute. EBITDA(1), excluding the duty refund, would have been $40 million or 6% of sales for the fourth quarter of 2006 and $296 million or 9% of sales for 2006. This compares to EBITDA of $53 million or 7% of sales for the third quarter of 2006 and $95 million or 11% of sales for the fourth quarter of 2005. EBITDA for the full year of 2005 was $447 million or 12% of sales. Fourth quarter 2006 earnings reflect the following after-tax items: - A gain of $289 million or $6.70 per share including interest, recorded as the result of the refunds generated from the settlement of the softwood lumber dispute; - A gain of $22 million or $0.50 per share related to the sale of West Fraser's interest in the Burns Lake and Decker Lake sawmills and associated harvesting rights; - An expense of $4 million or $0.08 per share related to share option compensation; and - An expense of $12 million or $0.28 per share related to the translation of U.S. denominated debt. Fourth quarter 2005 earnings reflect the following after-tax items: - A gain of $3 million or $0.07 per share related to share option compensation; - An expense of $3 million or $0.07 per share for costs related to the shutdown of a 50% owned sawmill in Red Earth, Alberta; and - A gain of $4 million or $0.09 per share related to the recognition of prior years' scientific research and experimental development tax credits. Operational Results Lumber EBITDA for the quarter was $388 million, including the $387 million duty refund. EBITDA, excluding the duty refund, would have been $1 million in the fourth quarter of 2006 compared to a loss of $10 million in the third quarter of 2006...

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