West Fraser Timber has posted a C$122m loss for the first half of 2009, but higher lumber prices provided some relief.
The Vancouver-based forest products giant recorded C$1.28bn sales for the period, down from C$1.59bn a year earlier.
Second-quarter losses narrowed to C$39m from C$83m in the first quarter.
The company’s lumber operations recorded earnings before interest, taxes, depreciation and amortisation (EBITDA) of C$1m for the second quarter compared with a loss of C$47m in the first quarter.
This reflected a lumber price increase in the second quarter, with the average benchmark spruce-pine-fir and southern yellow pine price growing by C$20 and C$4 per million board feet respectively.
West Fraser said the decline in US housing starts appeared to have bottomed out. But it said demand and prices for lumber, plywood, LVL and MDF would remain curtailed until new house construction increases.
