The economic climate remains tough and uncertain for some of North America’s biggest timber companies due to continuing oversupply, depressed pricing and US duties on Canadian softwood imports.
Weyerhaeuser reports net earnings of US$126m for the fourth quarter of 2002, compared with a US$15m loss in the same period in 2001. Its net earnings for the whole year were US$241m, down from US$354m in 2001.
The company’s wood products division recorded US$75m losses for the fourth quarter, US$57m worse than the previous quarter. Depressed prices and US duties are blamed for the poor performance, while the outlook for early this year remains “uncertain” because of continued market oversupply.
Georgia-Pacific broke even in the fourth quarter, compared with US$98m earnings for the same period in 2001. But including “unusual” items totalling US$621m, relating to asbestos liabilities and a loss on the sale of its Unisource Worldwide paper distribution business, the balance sheet shows a loss of US$234m.
For the full year, the company lost US$190m, compared to losses of US$476m in 2001. The building products division, including lumber and structural panels, recorded an operating loss of US$18m in the fourth quarter due to suspension of production at multiple sites, competitive pricing and higher wood costs.
Boise Cascade reports net earnings of US$6.2m for the fourth quarter and Deltic Timber experienced a US$13.4m loss. A US$12.2m deficit was recorded by Crown Pacific Partners, which complains of “anaemic lumber pricing”, while Rayonier‘s net earnings were US$12.9m.
