North American lumber companies continued to experience tough trading conditions in the first quarter of 2003, with many posting losses or marginal profits.
Boise Cascade Corporation reported a first quarter loss of US$27.5m, compared with a US$6.6m deficit a year ago.
Boise Building Solutions saw sales rise from US$560m to US$575m during the period but average plywood and lumber prices fell 5% and 14% respectively.
Plum Creek Timber’s first quarter profits fell by nearly 50% due to low lumber prices. Its profits of US$33m are down from US$56m last year.
Rayonier also reported a sales decline in its wood products division because of lower timber prices, while operating income was affected by higher MDF manufacturing costs. Sales of US$30m and an operating loss of US$3.2m were comparable to its fourth quarter of 2002 results.
The company’s overall income in the first quarter was US$6.1m, compared with US$9.4m a year ago.
International Forest Products Ltd posted a net loss of C$2.8m, due to a weak market in Japan, severe weather conditions in the US Northeast and softwood lumber duties.
A marginal improvement was recorded by Louisiana-Pacific Corporation, which had net profits of US$1.5m, up from a US$9.5m loss last year.
Slocan Forest Products Ltd is predicting continued price volatility and market uncertainty. During the first quarter its lumber division exprienced an C$11.3m loss due to lower US selling prices, US duties, shipment delays and a strong Canadian dollar.
