100 YEARS OF FOREST SERVICE PAGE A3
DYLAN GETS ON WITH LIFE PAGE A12
DUDDY DISAPPOINTED PAGE A17
OBSERVER QUESNEL - CARIBOO
SINCE 1908
Wednesday, February 29, 2012
VOL. 98 NO. 51
www.quesnelobserver.com
$ 34
1
includes HST
West Fraser seeing prices pick up in 2012 AUTUMN MacDONALD Observer Reporter West Fraser’s fourth quarter saw $6.1 million in earnings, or $0.14 per share of sales. The figures are based off $650 million in 2011 and are after discontinued operations of $7.3 million or $1.47 per share on sales of $2,762 million for 2011. Earnings (loss) for continuing operations sits at 11 million. Company CEO, president and chairman Hank Ketchum pointed to a number of “primary reasons” for the results. In the quarter our lumber operations generated an operating loss of $30 million ( third quarter – negative $15 million) and operating earnings plus amortization (EBITDA) of negative $8 million (third quarter – $6 million). The decline in results reflects weaker prices for lowergrade spruce, pine, fir (SPF) lumber and wider-dimension southern, yellow pine (SYP) lumber and reduced shipments. The panel segment, which includes plywood, laminated veneer lumber (LVL) and medium, density fiberboard (MDF) did not generate any operating earnings in the quarter (third quarter – negative $2 million) and EBITDA of $4 million (third quarter – $2 million) as Canadian dollar plywood and MDF prices showed some improvement. Pulp and paper operations generated operating earnings in the quarter of $13 million (third quarter – $19 million) and EBITDA of $27 million (third quarter – $36 million). Pulp prices weakened during the quarter with the northern, bleached, softwood, kraft (NBSK) benchmark averaging seven per cent lower than in the third quarter. “Shipments to China were slower as well,” Ketchum said, adding the company was seeing prices pick up “substantially in the new year.” “We ended a challenging year with a difficult quarter as markets for our products continue to be unsettled. “We are very encouraged with the results of our capital investment program as well as the continued commitment of our employees to West Fraser’s long-term success.” Ketchum also highlighted the prediction lower grade lumber would see an increase in price.
Pacific Salmon Foundation Dinner, Dance & Auction SATURDAY, MARCH 3, 2012 Quesnel Seniors’ Centre Tickets available at Frank’s Supermarket, Green Tree Health & Wellness or Quesnel Cariboo Observer
34 Flags In anticipation of the Rick Hansen 25th Anniversary Medal Bearer Relay, set to enter Quesnel March 22, Quesnel Downtown Association are hanging the 34 flags of the countries Rick Hansen wheeled through on his historic Man in Motion World Tour. Watch for the flag story in the weekend Observer. Here, Holly Fergusson braves the weather to promote the cause. Annie Gallant photo
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