Strong OSB business has boosted Nexfor Inc’s first quarter profits to US$81m, up from just US$1m a year ago.
The company said OSB prices had quickly rebounded after a sharp decline last December, with benchmark north central prices reaching a new record of US$498 per ft2.
Growing production and rising prices helped push West Fraser‘s first quarter profits to US$27m, compared with US$11m in 2003. Its lumber division earnings rose to US$69m from US$25m a year earlier, helped by record sawmill production and stronger timber and plywood prices.
Louisiana-Pacific said robust housing and DIY markets had led to a sharp growth in OSB, siding, decking and engineered wood product shipments so far in 2004, a trend it expects to continue.
LP’s net profits were US$110m, up from just US$1.5m a year ago. Sales topped US$695m, compared to US$407m last year.
International Forest Products said it was “cautiously optimistic” about prospects for the rest of the year, partially due to strong demand and prices in the US structural market. Its first quarter net profits were C$903,000, compared to a net loss of C$2.4m in 2003.
Meanwhile, Rayonier was upbeat after posting net profits of US$75.5m, though the wood products division’s operating profits were just US$1m due to lower volumes and high manufacturing costs.
