North American timber producers’ latest financial results continue to reflect the poor state of the US housing market.
Weyerhaeuser has reported net profits of US$10m (2010: US$14m) for the second quarter, with net sales the same as a year ago at US$1.8bn.
The wood products division recorded operating profits of US$1m compared to breakeven a year ago. Sales were up to US$702m (2010: US$624m).
But Weyerhaeuser anticipates a third-quarter loss from the division due to lower selling prices for lumber and OSB, and lower sales volumes across most product.
West Fraser Timber recorded earnings of C$29m on C$1.4bn sales for the first half of 2011.
Its lumber division recorded a C$8m operating loss in the second quarter, due to sharp declines in lumber prices combined with higher Canadian log costs and a stronger Canadian dollar. The panels business, which produces MDF, plywood and LVL, recorded a C$5m operating loss due to weak plywood prices and high log costs.
“Without industry production curtailments, lumber prices in the second half are expected to be lower than in the first as low US housing starts will continue to limit demand,” West Fraser said.
Norbord’s profits declined substantially to US$10m in the second quarter of 2011 compared to US$72m a year ago.
North American operations generated a breakeven performance compared to US$64m a year ago, while European operations were buoyant with EBITDA profits of US$13m (2010: US$10m).
Canfor reported a second quarter net income of C$26.2m (2010: C$43.7m) from net sales of C$619.1m (2010: C$634.7m).
Louisiana-Pacific recorded a US$24m second-quarter loss (2010: US$49m), with sales down 19% to US$362m, primarily due to lower OSB prices.
