TimberWest says its has enjoyed a strong start to 2004 despite a 20% drop in sales compared to this time last year.
The Canadian company reported first quarter net sales of C$101.6m, down C$25m from 2003. But operating earnings of C$28m represented a 14% margin improvement on a year ago.
The better margins have been attributed to lower production costs for both timberland and manufacturing operations.
TimberWest is optimistic about pricing in log and lumber markets for the remainder of 2004, with healthy economic reports in Japan and the US. It says there is strong demand for hemlock in South Korea.
