West Fraser Timber has reported earnings of C$29m on C$1.4bn sales for the first half of 2011.
The company’s lumber division recorded an operating loss of C$8m in the second quarter, due to sharp declines in lumber prices combined with higher Canadian log costs and a stronger Canadian dollar.
The panels division, which manufactures plyood, LVL and MDF recorded a C$5m operating loss due to weak plywood pricesand higher log costs. MDF and LVL production continues to be curtailed.
“Without industry production curtailments, lumber prices in the second half of the year are expected to be lower than in the first half of the year as low US housing starts will continue to limit demand,” West Fraser said.
