Canadian lumber giant West Fraser Timber has suffered its worst financial loss in its history.
The company, which has lumber, panel, wood chip, LVL and paper operations, posted a C$137m loss for 2008, and a C$70m loss in the fourth quarter alone.
West Fraser CEO Hank Ketcham said the losses were due to the lengthy and severe US housing market decline, which has hit volumes and prices. The company has already curtailed 30% of its six billion board feet production capacity.
The lumber division recorded losses of C$191m in 2008, while the panels business was C$9m in the red. Lumber sales declined to C$1.64bn from C$1.8bn in 2007.
Spruce-pine-fir prices weakened to historically low levels near the end of the current quarter. But southern yellow pine’s benchmark price actually rose in 2008.
