Latest earnings figures for the second quarter of 2001 show a contrast in fortunes for several of the large forest product companies.
Weyerhaeuser reported a 16% drop in profits in the second quarter, with net earnings of US$171m compared with US$203 in the same period last year.
Its net sales were US$3.9bn, down from US$4.2bn in the corresponding period last year.
International Forest Products Ltd reported a net loss of C$658,000, compared with net earnings of C$300,000 in the preceding quarter. Company president Duncan Davies blamed deterioration in the Japanese lumber market and reductions in chip prices.
Stora Enso’s sawn timber earnings were up from €5.6m in the first quarter to €7.9m, but the company said oversupply in Europe was still a problem. Fewer new housing starts is depressing construction and joinery volumes and prices in Europe and Japan.
Total earnings for the quarter were €346.4m, down 33.8% on the previous quarter.
Meanwhile, Willamette Industries’ net earnings were up to US$70.8m from US$66.6m in the first quarter.
