And they remain optimistic about the upswing continuing in 2014 on the back of a predicted 20% increase in US housing starts this year and rising selling prices.
“We consider 2013 represents a year of remarkable recovery,” said Ted Seraphim, CEO of Canadian company West Fraser Timber. “We achieved our highest earnings since 2006, reflecting a continuing improvement in the US housing market after a prolonged downturn.”
Louisiana-Pacific posted a US$24m loss for the fourth quarter despite strong sales. The company suffered losses on foreign exchange and a 20% fall in prices for its key OSB products.
For the year, earnings from continuing operations at US$177m were well ahead of US$30m in 2012. LP’s OSB profits for Q4 fell away to US$7m from US$58m a year before. The engineered wood products division, which includes I-joists, enjoyed higher sales, but annual operating loss of US$14m.
LP also announced the US$863m acquisition of Ainsworth Lumber would be delayed until after mid-March because of ongoing competition reviews by regulators in the US and Canada.
International Forest Products reported strong earnings for the fourth quarter on record production and sales levels, boosted by the addition of four US sawmills. Selling prices were also up 12%. Adjusted earnings before tax and other costs more than doubled to C$134m for the year.
West Fraser Timber posted 2013 earnings before tax and other costs of C$97m (2012: C$113m) from C$3.5bn sales (2012: C$3bn). Canfor reported income of C$28m for the last quarter, which was flat on the same period a year before 2013, but was C$228.6m for the year, up from C$26.4m in 2012.
