Quesnel Cariboo Observer, July 27, 2012

Page 1

BBDAYS2012 THROUGHOUT ISSUE

FISHING TALE PAGE A19

BBDAYS SPORTS WRAP-UP PAGE A23

OBSERVER QUESNEL - CARIBOO

SINCE 1908

Friday, July 27, 2012

VOL. 98 NO. 94

$ 34

1

www.quesnelobserver.com

includes HST

Summer in the Cariboo Blue skies, hay fields and Saskatoon bushes – a reminder of why Quesnel is the perfect place to be. Karen Powell photo

West Fraser encouraged by quarterly results AUTUMN MacDONALD Observer Reporter West Fraser is looking at continued operational improvements. West Fraser Timber Co. Ltd. reported earnings for the second quarter of 2012 of $27 million and earnings per share of $0.63 on sales of $774 million. For the first half of 2012, earnings were $10 million and earnings per share were $0.24, on sales of $1.5 billion. In the quarter the lumber segment generated

operating earnings of $34 million and operating earnings plus amortization (EBITDA) of $53 million. Lumber prices rallied strongly as improved U.S. demand combined with continuing Asian demand for Canadian lumber. Higher lumber prices also triggered a reduction in duties (from 15 per cent to 10 per cent) charged on softwood lumber exported to the U.S. from B.C. and Alberta for the month of June 2012. The panels segment,

Dr. Michael Duperron QUESNEL CHIROPRACTIC &

Sarah Honey

REGISTERED MASSAGE THERAPIST

274 Reid Street 250-992-5110

which includes plywood, laminated veneer lumber (LVL) and medium density fiber (MDF) generated operating earnings in the quarter of $8 million and EBITDA of $12 million. Improved plywood and MDF prices were the main contributors. Pulp and paper operations generated operating earnings of $14 million and EBITDA of $26 million. The average northern bleached softwood kraft (NBSK) benchmark price

for the quarter businesses increased to to improve “We are US$900 per if U.S. encouraged by new home tonne from US$870 in this quarter’s construction the previous continues to quarter but recover. results...� reduced NBSK “Despite Hank Ketcham, WF CEO some production and shipments encouraging and increased signs, the chemical costs resulted current recovery still in a marginal decline appears to be fragile and in operating earnings could be set back by compared with the adverse global economic previous quarter. events,� the company’s The company said statement reads. they expect results from The company adds with their lumber and panel the additional supply of

Good day, Quesnel. Thanks for reading — and that includes loyal subscriber Sue Rucheleau! To join the Observer family, please call 250-992-2121 and ask for circulation.

NBSK, the pulp business will require market adjustments before prices recover. Still, the company remains optimistic. “We are encouraged by this quarter’s results and we expect to see continuing operational improvements as a result of our extensive capital program and the efforts of all of our people,� West Fraser chairman and CEO Hank Ketcham said. “We are well positioned to take advantage of the anticipated recovery.�

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Deb Quick, Travel Consultant

250-992-5169 in Quesnel %FCCJF 2VJDL

Deb Quick operates a home-based Travel Agency and is an Associate with Flight Centre. Call Deb for all your travel needs!

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