ten mile runners PAGE A3
better at home underway PAGE A12
crossfire wins PAGE A15
OBSERVER QUESNEL - CARIBOO
SINCE 1908
Wednesday, May 22, 2013
VOL. 99 NO. 75
West Fraser remains cautiously optimistic
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AUTUMN MacDONALD Observer Reporter West Fraser remains “cautiously optimistic” after continued improvement for lumber prices. In the first quarter of 2013 the company reported earnings of $67 million or $1.57 per share on sales of $863 million. “In the quarter our lumber operations generated operating earnings of $122 million and operating earnings plus amortization (EBITDA) of $146 million. West Fraser credits the improvement over the prior quarter reflects for improved prices for spruce, pine fir (SPF) and spruce yellow pine (SYP) lumber. “The panel segment, which includes plywood, laminated veneer lumber (LVL) and medium density fibreboard (MDF), generated $14 million of operating earnings and EBITDA of $18 million in the quarter, reflecting higher plywood prices,” the company stated. Pulp and paper operations generated an operating loss of $4 million in the quarter and EBITDA of $8 million. “The decline from the prior quarter occurred despite the increase in pulp prices as the results were adversely affected by production issues at our northern bleached softwood kraft (NBSK) mills,” the shareholder release states. The company predicts both SPF and SYP lumber prices will continue to steadily improve as spring construction begins. B.C. and Alberta stumpage costs are set to increase in the next quarter but lumber productivity and cost improvements are expected to continue to improve over the next few quarters. “We’ve been encouraged by the recovery of the U.S. housing market over the last few quarters,” West Fraser’s President and CEO Ted Seraphim said. “Our outlook remains cautiously optimistic for all our building products.”
Spring blossoms A sure sign that spring is here are the beautiful fruit tree blossom displays across the Cariboo. Autumn MacDonald photo
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